Good Tuesday morning. Breaking: this morning we got the April CPI report, which essentially matched expectations with core CPI up 2.8% y/y and base CPI showing inflation of 3.8% y/y. The markets have looked through rising inflation with the expectation that oil prices will peak, as the war comes to an end and as the Strait is eventually reopened.

We also find this interesting; during the dotcom melt-up, inflation averaged right at 3%, while 10 year yields averaged a stunning 6.1% over that 5 year period (vs todays 10-year of just 4.4%). Perspective helps...

Even as we closed at another set of ATH’s in S&P 500 and Nasdaq, yesterday’s action also marked 5/6 days where the internals have been a bit poor, a point that many market timing bears are making the rounds with. But that’s not what matters most, right now. As seen below, our #1 directional tell…the relative strength chart of the semis to S&P 500…continues to go parabolic. While this doesn’t mean we won’t have an extre...