No More Taco! I Want French Fried Potaters

It seems like the algos are the only ones these days who do not recognize just how absurd the war "on-again, off-again" pattern is conveniently playing out around market hours and weekends. One has to wonder just how scary markets will become if and when the algos finally flip and begin to sell everything, regardless of perceived "TACO" concessions and assorted other headlines. One can only yearn for more of a meat-and-potatoes type of market, rather than constant TACO's to pacify the tape while battling a highly determined enemy. 

For the time being, we have software and small caps leading higher, with AMZN GOOGL MSFT META in the Magnificent 7 being the mega cap leaders du jour. 

The Dollar/Yen cross is still reeling from a double-whammy intervention from both Japan and America, though I see the cross is stabilizing a bit just above 156.

Oil, as well, is reeling from the latest Trump "TACO" over the weekend, which turned out to obviously not based on, ahem, the most stable foundation of the truth since there are no peace talks taking place. As we speak, the front month futures for WTI are battling it out at the $80 level, which equates to about $120 on the USO ETF. 

On a quieter but still significant front, corn, wheat, and beans are finding buyers after their recent dips, with CORN especially looking tight after forming a bullish "handle" on its daily chart. These ags remain a lingering issue with inflation, as the lag effect from Hormuz closures are putting farmers in a terrible spot where they cannot afford fertilizer which, again, is overlooked due to oil headlines. 

Overall, bulls are excited for rotation within tech. However, as long as the SMH ETF stays below its $565 breakdown level we have the clear leaders of the prior melt-up still in a corrective pattern, at least, coupled with rates on the long end of the curve still sticky high. All of that still merits much more caution than is currently being heeded by market players.