Markets continue to stick after edging out of long ranges. Foreign countries that are in recession are at new highs. (EASY MONEY AND PRINTING OF MONEY MATTERS.
The move is being led by everything that was dead for a long time. FINANCIALS, VALUE, CONSTRUCTION, INDUSTRIALS, CHEMICALS…while most growth remain dead or bearish. OILS are even waking up.
On the other end, seeing near term tops in defensive areas like UTILITIES, STAPLES, some REITS, some HOUSING…so the jello still moving on the plate.
NEAR TERM, by most measures, things quite overbought here. Pullback potential.
As we thought, the president has finally listened to advice as you can see the rhetoric on China is much more friendlier with our expectations of a deal getting done. Elections matter.