Clearly, the focus going forward is going to stay on the macro news to either enforce or dispel the notion that inflation is rising.
The market's reaction has been pretty benign. But I think the market is looking at this as more constructive than destructive. I think the market has absorbed this extremely well even though there is a downward bias.
The markets got a little premature declaring victory last week and the shorts rushed in to cover. Now enthusiasm has dissipated and the selling pressure is on. People are realizing that the war is going to be longer and more drawn out than anticipated.
We took two steps forward last week and only 1 step back so far this week. So there is some comfort in that. Hopefully we'll get through this weekend without incident and that should give people some reassurance.
Everybody knows the second quarter is going to be miserable but there's a sliver of optimism on the part of investors that would hope that the commentary would be geared toward a better scenario.
Be prepared for a continuation of negative commentary by companies as they warn about the second quarter.
The profits numbers will be mostly dismissed in the first quarter as a casualty of war. Now we'll see how much momentum we can pick up from the reverse of war negativity.
The inclination is toward selling the rally instead of buying on the dips.