Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
This is one of those reversion sessions – many of the sectors doing little are moving today such as semiconductors and transports. Intel (INTC) was not that great yesterday but expectations were very low. This is moving up a host of related names. I am not sure why exactly some of the global growth names are going but most of these are very broken stocks – see Cummins (CMI) from a few weeks ago. I think the thesis here is that expectations just have been lowered a lot so maybe the earnings VERSUS expectations wont be so bad. Outside of that energy stocks are working.
Meanwhile most of the stronger sectors of the past week are sitting or negative – REITs, healthcare, consumer staples, etc. It continues to be difficult to find a theme that can work week after week.
As for the S&P 500 we are back to this 1370 level – 1340 and 1370 have been key levels all year. The old highs from early in the month were 1375ish so a break above that should see some capitulation from the short sellers. But for the past 7 weeks buying a breakout or a breakdown in this market has been the losing trade.
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