New Highs? Really?
It looks like the weakest week of the year was a dud. And I mentioned on Monday, the September 16 low now has significance because stocks rallied as they should have.
Both the S&P 500 and NASDAQ 100 are leading and poised to score new highs next week against the backdrop of weak internals. Failing here would have bearish consequences below that Sep 16 low.
With bond yields continuing to rise, pressure remains on the S&P 400 and Russell 2000 as seen below. Both are in a position to bounce, especially if bond yields stop going on, let alone peak which I think they are doing.
Interestingly, both August and September are on track to close higher. Both are traditionally softer months, especially in midterm election years. More on that next week.
Another storm of the century is coming this weekend to CT. I am on the road in the Sunshine State and will try and hope to get home on Sunday. Luckily, I have a number of flights booked to various airports so I am cautiously optimistic. Stay safe. Stay dry.
On Tuesday we bought FDD, SPMO, MTUM and more CALM. We sold some MRNA. On Wednesday we bought more CMG, more TOST, more QLD and more MQQQ. We sold GDX, GDXJ, some MRNA and some CALM. On Thursday we bought SSO, more TQQQ, more IJT and more QLD. We sold AGDYX, TYHYX, EMB and some PCY.
