If Powell follows through on what the market thinks it’s going to do and the Fed keeps overcompensating on the liquidity front, this could be a very good time for tech stocks. Much like stocks and bonds moved down in unison throughout 2022, we could be looking at a reversal of that trend setting up now. Lumber is soaring again as added liquidity figures to provide an overall economic boost.

Last week’s banking sector developments may have actually been a positive for utilities. Tech is quietly having another breakout relative to the S&P 500. After several fakeouts by Treasuries, this looks like it might be the real deal (even if it only took a banking shock to do it). I don’t think there’s any evidence that there is a systemic failure in banks occurring yet.

Despite expectations for higher rates throughout 2023, which should be hurting growth sectors, tech has consistently been one of this year’s biggest winners. There are absolutely no signs here that investors are worried about credit quality. The influx of economic data and central bank announcements over the next two weeks will likely add to volatility in the dollar.