PRE MARKET…PAY NO ATTENTION TO THIS HEADLINE

Headline in the WSJ this morning: “SEPTEMBER IS ROTTEN MONTH FOR U.S. STOCKS!”

Pay no attention. If the markets want to head lower, they will in spite of what month it is but:

The recent correction was again anemic.

The recent rally has the market turning the corner.

Leadership showing up. Biotechs now on the move. New highs finally picking up. NASDAQ and NDX right at old highs.  Healthcare (XLV) has turned up. Technology (XLK) has moved to new highs again. In other words, the tone changed off the “scare” open on Tuesday. And this tone change came after markets were whittling down. We highlighted all the issues for you.

To be sure, there is still about half the market not participating…but we don’t care. We are more interested in whether anything is working. For a bit, the best stuff was sitting/pulling back…the worst stuff were getting hit.

We have been asked more than once (maybe 100 times) whether this move was only end of month shenanigans. Valid question. The answer: don’t rationalize. Pay attention to price…and if price starts gagging again, one deals with it.

Have a great holiday weekend and if you are in the position, try to help out those affected by the floods. Next up, us Floridians are now watching Irma!