The #MysteryBroker checked in overnight. Still cautious, mindful of the consistent tendency for weakness from this point in Sept. into early Oct. Likens the backdrop to Sept. 2020: Poor market breadth for many weeks, growth stocks holding up indexes until they no longer could.
The swing toward bearish sentiment in the AAII survey last week and outsize focus on Sept. weakness by pundits gives #MysteryBroker some pause in his correction call. Says hard for stocks to "really break down" (more than a 10% correction) when AAII bears surge like this.
Though #MysteryBroker says there was a similar shift toward negative retail sentiment the week ended Sept, 10, 2020, and there was further downside from there in that correction. Or maybe a bounce soon and some weakness gets shifted into October.
The #MysteryBroker continues to be bearish on Treasuries, notes that yields firm even with "softer" core inflation print last week. Believes the 10-yr Treasury above 1.5% would mean problems for growth stocks. Still thinks hypergrowth faves like $SNOW and $AFRM wildly overvalued.
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