My Broken Record Continues
Same ole story here folks. Stocks bottomed. Bears trapped. Investors disavow the rally. All-time highs in sight. Dow 20,000.
Talk has certainly turned from questioning me on how the market could possibly rally to when the rally might end to now finally embracing the rally. I love how the naysayers dismiss and disavow the move because there was some “external force” like the dovish talk from the ECB or China cutting rates. That’s what happens!
Another huge week from the bulls and yet another win for my bullish scenario. I feel a little slighted that the financial channels don’t want to let me do my victory lap and won’t follow up with the only person who got on board this move before it happened. Oh well…
Leadership continues to change and that can be a good and bad sign. Biotech and healthcare have been big laggards and given that we own them, I can’t say I am all that happy. However, semis, transports, banks and discretionary have all stepped up in a very positive way.
I couldn’t be more pleased with the action in the high yield (junk) space. I said this before, but there is a real possibility that a rally could run right into January.
Now, stocks have rallied really hard, really fast. A breather is more than okay at this stage. The bears’ line in the sand was just crushed on Thursday so some mild pause to refresh should be expected. One thing that concerns me in the back of my mind is that no one seems at all worried about the debt ceiling because every other time, it has worked out. It will this time too, but complacency seems especially high, where there is typically some worry out there.
Enjoy the weekend!
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