Excerpt from the article:
Investors wouldn’t be blamed for sizing up the first losing week in three for the S&P 500 and decide to start the weekend early. And stock futures are just barely positive.
Who can blame them after the mixed bag of data this week that has reigniting worries in some corners about whether the Fed could push the economy into a recession with its rate-hike plans?
That brings us to our call of the day from TheoTrade’s chief market technician, Professor Jeff Bierman, who sees a bubble ahead for consumer staples, which he calls a “‘safe haven’ rotation sector that is overbought and overpriced.”
Bierman doesn’t hold back with his warning. “We’re heading into a recession and consumer staples are priced like growth stocks when they’re actually value stocks. The Marubozo signals that we are in for a much deeper correction in consumer staples than we’ve experienced in the past couple of days,” he tells clients (more on Marubozo below)