By Investing.com Staff
Mizuho desk analysts say yesterday’s rally caught most off guard and it sounded like many missed the move. The NASDAQ is now up 19.8% year-to-date and The S&P is up 8%. Further, in another sign of animal spirits, crypto ETH is testing fresh 52-week highs and is up another 5% and now up 76% YTD. The analysts think the pain trade "remains to the upside."
Their highlights:
- "Based on conversations and lots of frustrating calls from every type of investor it feels like the pain trade remains to the upside.
- Bears are saying this rally makes no sense citing valuations, lackluster earnings, elevated inflation, recession fears, fed expectations, etc.
- Bulls are saying this is a goldilocks scenario as the job mkt seems stable while inflation is NOT surprising to the upside. CPI was fine, PPI of 2.7% vs 3% was just right and jobless claims were a small beat (239k vs est 230k).
- The Riskiest assets are also ripping I’e Crypto is testing 52-week highs after the ETH Shapella Upgrade.
- And the NDX and SPX are both taking out technical resistance to the upside. This is sucking other buyers into the market and could lead to a quant bid."