The Morning Call---Software's explosive setup

 

The Morning Call

 

2/26/26

 

The Market

         

    Technical

 

            Wednesday in the charts.

            https://www.zerohedge.com/markets/crypto-crashes-halo-hiccups-bullion-big-tech-bid-ahead-nvda

 

                Wednesday in the technical stats.

            https://www.barchart.com/stocks/momentum

            https://www.barchart.com/stocks/market-performance

            https://www.barchart.com/stocks/sectors/rankings

            https://www.barchart.com/stocks/signals/new-recommendations

 

            When everyone buys puts.

            https://www.zerohedge.com/the-market-ear/when-everyone-buys-puts

 

            Software’s explosive setup.

            https://www.zerohedge.com/the-market-ear/record-underweight-massive-short-historic-oversold-softwares-explosive-setup

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                          Weekly initial jobless claims totaled 212,00 versus consensus of 215,000.

                          https://www.zerohedge.com/the-market-ear/record-underweight-massive-short-historic-oversold-softwares-explosive-setup

 

                        International

 

The December Japanese leading economic indicators came in at 111.0 versus projections of 110.2.

 

The February EU economic sentiment index was 98.3 versus estimates of 99.8; the February industrial sentiment index was -7.1 versus -6.1; the February services sentiment index was 5.0 versus 7.5; the February consumer confidence index was -12.2, in line.

 

                        Other

 

                          February consumer confidence and sentiment.

                          https://econbrowser.com/archives/2026/02/confidence-and-sentiment-february-2026

 

            Fiscal Policy

 

              Our ruling class has a promises problem.

              https://www.foxnews.com/opinion/america-has-very-expensive-promises-problem-bill-coming-due

 

            Recession

 

              This author thinks that a recession watch is warranted.

              https://talkmarkets.com/article/per-prof-edward-leamers-forecasting-method-a-yellow-flag-recession-watch-is-warranted-1772036709

 

            Tariffs

 

              New tariffs kick in at 10% not 15%.

              https://www.ms.now/news/trumps-new-tariffs-kick-in-at-10-not-the-15-he-threatened

 

The problem with Trump’s new claimed authority to impose tariffs (Section 122 of the 1974 Trade Act).

              https://www.wsj.com/opinion/section-122-cant-carry-trumps-tariffs-5c5eee5e

 

            The Dollar

 

Is the dollar really dead? An interesting thesis, but I think that the author has the cause and effect reversed. The marginal seller of the dollar is selling it because it is depreciating in value and they want an asset that will hold its value or appreciate. The dollar is weak not because people want to own another asset but because they don’t want to own a depreciating dollar.

https://x.com/jc_paretsx/status/2025618616444686337

 

            The Financial System

 

              UBS sees the potential for cascading defaults in private equity.

              https://www.zerohedge.com/markets/private-credit-rocked-ubs-shock-outlook-surge-cascading-defaults-and-widespread-contagion

 

            AI

 

              AI derangement syndrome.

              Update On AI Derangement Syndrome & Its Consequences

 

     Investing

 

            Nine out of 10 valuation indicators in sell territory.

                        https://www.marketwatch.com/story/9-of-the-stock-markets-10-most-watched-valuation-indicators-are-now-in-sell-territory-ebdb9d99?st=5c69ix

 

            Diversification is not just for defense.

                https://www.wsj.com/finance/investing/diversification-its-not-just-for-defense-anymore-9d00f6b1?st=nxyFtY

 

            Dividend payers in the S&P 500.

            https://politicalcalculations.blogspot.com/2026/02/dividend-payers-in-s-500.html

 

            The ten immutable laws of building wealth.

            https://www.advisorperspectives.com/commentaries/2026/02/25/10-immutable-laws-building-wealth

 

            There is still life in the software stocks.

            https://www.marketwatch.com/story/why-this-investor-says-you-can-make-good-money-off-software-stocks-if-you-trade-them-like-telephone-directories-e4d15635

 

            Bond investors are buying duration.

            https://www.capitalspectator.com/bond-investors-embrace-maturity-risk-in-2026/

 

            Goldman sees five risks to the market.

            https://www.zerohedge.com/markets/goldman-warns-equity-market-crash-biggest-risk-2026-growth-forecast

           

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

            US electric power generation by source.

https://wolfstreet.com/2026/02/24/whoosh-goes-demand-for-electricity-us-power-generation-by-source-in-2025-natural-gas-coal-nuclear-wind-hydro-solar-geothermal-biomass-petroleum/

 

 

 

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