• The mother of all crashes? No bubble at all? While Michael Burry and Cathie Woodkeep arguing, investors are starting to size up their portfolios as the record highs keep going. Fed taper concerns and the spread of the Delta variant don't seem to be able to weigh on sentiment for more than a day, though trading is getting choppier and warnings of a correction are getting louder. Overnight, Dow and S&P futures slipped 0.5%, while contracts linked to the Nasdaq fell back 0.4%.
• Things are especially getting eerie without an S&P 500 pullback of at least 5% since last October, though Q2 corporate earnings have been strong and many investors are betting on a continuing economic recovery. The "buy the dip" crowd may also be becoming a possible force to be reckoned with on Wall Street, though some are still flagging caution and say there are "clouds on the horizon."
• Research from Citi: "Our panic/euphoria model remains very elevated and is warning of coming losses. This is the longest period of ebullient readings without a market correction since 1999/2000 and we anticipate that something will give. The Street is too complacent."
• Another alert: "Against a backdrop of thin liquidity as investors take summer vacations, minor stock market corrections are to be expected in a market that is pricing in peak earnings, extended price-to-earnings ratios and elevated economic growth expectations," added Richard Saperstein, chief investment officer at Treasury Partners.