We continue to stick with our call from last Wednesday morning that A LOW was finally put in after  nauseating drop. It is at that point we let the cards come out of the deck feeling that sellers were finally washed out. Since, markets have edged up but we must tell you, the rally so far is maybe a B- to a C+…just not that great. We are less than thrilled that our favorite growth/high beta names continue to act just a wee bit better than the Knicks and Giants offense…and that is definitely not saying much. TECH/GROWTH/BETA and all that stuff must lead if the market is to get going again. Always has, always will.
On top of that, except for the DOW, most everything continues to trade below longer term moving averages. Every day below is a bad day. If selling rears its ugly head again, it will be easier to shred the market again being below these vital levels.
We are writing this at 330 am et…looks like the Dems got the house, while the Reps added in the Senate. We expected both. We did not think this would change markets. Trump was telling all that if the Dems win, all hell will break loose. We are not so sure as gridlock ain’t the worst thing with a bunch of dolts on both sides who have brought us to near $22 trillion of debt. We will do the smart thing and just stick with the big picture at hand. We do not think the big picture changes much regardless. Markets are still in yuck mode regardless of this rally off of deeply stretched, extended and oversold conditions. Leadership remains fleeting and what leads is very defensive. But, we have no problem with higher prices for now to continue to work off the drop in a period of seasonal strength. Just know this ain’t going to be easy street. Just not enough in the way of leadership.
As we write this, futures are up nicely but of course can change overnight.