MONDAY
A bit lighter on the economic data front. Even earnings are winding on down.
Looks as if the market will be more or less on its own as the NYSE indices try to follow the path of NASDAQ and SOX, i.e. to higher highs and actually make them stick.
Oil stocks are trying to make a new move to the upside. Machinery is setting up to rally again
just as chips and China stocks after they suffered a hiatus and some volatility.
With the NYSE indices again in a lateral to lower consolidation there is a lot of negativity about the market's future. As noted last week, that type of sentiment is a positive for the upside.
I recall Tepper being nervous and the market bottoming and surging. Gundlach is shorting. We will see. I will say when Tepper made his comments NASDAQ was not punching out new highs.
Now don't get me wrong. Gundlach is very smart and may be right. The thing is, the market is not showing it yet. Sure leadership is narrower than you like, but it is also trying to expand some.
Yes the stocks moving higher are a limited group, but they are solid stocks and the indices are not flopping. That said, this is no broad, lift all boats kind of move.
Source: Investment House