Ladies and gentlemen, we have froth. When a sneaker company circling the drain merely announces that it’ll become an AI company and sees its market cap increase from $21 to $148 million, the market has officially become frothy.

It makes just as much sense that the S&P  500 made new all-time highs yesterday. It’s not just “climbing a wall of worry” as the talking heads like to say. It’s flat out ignoring some of the biggest ever macroeconomic threats to the economy in every corner of the world, brought to you by a guy who fancies himself the Lord and Savior.

For the record, VX is still bouncing…

…and CL – with only Trump’s bloviating to suggest the war is over – is still trading in its 90s.

Where this market goes is anybody’s guess. But, between the froth, the macroeconomic backdrop, VIX and VX bouncing at support, overbought ES and SPX, elevated oil and gas, DXY at support, rising inflation, and the very real risk of the Iran war expanding, I would be very wary of chasing stocks. We are quite overdue for a significant backtest to close multiple obvious gaps, with the most obvious one being 6% lower at 6618.

Stay tuned…