Futures up a wee bit.
Markets felt a little popped yesterday but let’s call it no biggie. Markets are overbought while call buying has skyrocketed. So maybe a rest…maybe.
Seeing distribution in utilities, reits and defensive areas while best moves continue to be in lower beta stuff that was dead for a long time. With rates backing up, financials have had their way. We would suggest they are overbought. Also seeing bids in a bunch of lower beta, earnings and sales down economically sensitive names. And there there are the SEMIS, which have been relentless on, for the most part, crummy numbers.
Money continues to flow out of most growth names with many SOFTWARE names continuing to act horrid.
Since you are asking, BA had a good day yesterday. It seems every time the CEO is on the tube, the stock gets a bid. Still a decent amount of uncertainty remains but every day gets closer to getting the planes back in the air.
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.
Heading into the weekend…a reminder:
The big 4 indices are entering new high ground.
We now enter the usually seasonally strong November and December.
Our economy, while having some issues, continues to show strength, especially with the consumer and employment figures.
With all this, one would think central banks would be looking out for some tightening. Instead:
The European Central Bank starts more money printing today. They had promised to stop. The following countries are all easing. Some are lowering rates even though their rates are already negative.