Today is 108 market days from the 3/23 low. Check for consistent ranking within the past 21 days for new commitments.
Europe and Asian rose over night with US$, Treasuries and gold falling and futures moving higher. Another major bear capitulated forecasting a year-end high. “The equity market has traded soft under the surface of the headline indices, which are now being driven by just one stock—Apple.” – Morgan Stanley
The graph is from SentimenTrader. The options market is “all greed no fear”! As their data shows, Gamma exposure, a measure of sentiment in the options market, has surpassed levels, which in the past resulted in sizable market downturns.
Apparently AAPL has completely replaced GM as the bellwether of the U.S.
Sell side momentum was above average for Monday in my stock scans giving a weak, down side bias that has been replaced with this morning’s optimism.
The S&P gained one percent pushing through the psychological resistance at 3400. The S&P is back in overbought territory with RSI above 70. This is the highest RSI since June when a surprising one-day 6% drop occurred.
Sector rotation dominated returns on Monday as tech surrendered its leadership.
Overall, this remains positive.
Vaccine fast-track hopes elevated S&P and COMPQX to new highs. Hong Kong has the first case of re-infection and MRNA hopes soon to sell vaccine in Europe. FDA commissioner misspoke about plasma efficacy but apparently Mr. Market wasn’t listening.
Leon Cooperman closed his hedge fund in 2018 but is very concerned about the damage of the massive debt expansion of the past year. Not having recovered fully from 2009, the ability to service government debt is increasingly difficult with a federal deficit nearly 15% of GDP.
High grade corporate debt continues growing. The bigger you are, the easier it is to borrow. For airlines, the frequent flyer miles are actually collateral for new debt. What would you get in a default? Free flights on a bankrupt airline?
A lack of supply, record-low mortgage rates, and de-urbanization are driving a suburban housing boom which will probably be confirmed in housing data to be released today.
DJI is less industrial and more tech as XOM gets the boot.
Maybe there is an end coming to the domestic terrorism that has been reigning in Democrat run cities.
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