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The Morning Look

ByGary Kaltbaum

Stock Market Overview: 

Futures are lower ahead of Tuesday’s open as investors pause to digest the very strong rally we have seen over the past 3.5 weeks.

Gary’s Thoughts: A few important thoughts: Leave no doubt small caps are laden with commodities…Bullishness on commodities is where bearishness was just a couple of weeks ago. That’s what happens when a few $2 names go to $4…of course, after dropping from $100….Markets remain assininely overbought but unlike recent past, we think pullbacks  are bought for now…growth leadership (FANG-types) is actually topping here…if commodities top out, that’s the end of the rally as they have led…if commodities pull back constructively, they are buyable on tbhose pullbacks. …just keep in mind how huge the bear market in commodities has been…

 

Economic Data: 

  • NFIB Small Business Optimism Index 6:00 AM ET
  • Redbook 8:55 AM ET

Highlights Of The Day:

  • Iron Ore Jumped over 19% on Monday to $63.74, Biggest One-Day Gain on Record
    Gary’s Thoughts: Wow!
  • Hong Kong Home Sales Tumble 70% as Slowdown Intensifies
    Gary’s Thoughts: But everything is fine!