Some comments from briefing tonight, fwiw:
briefing.com
The Nasdaq is up 37% since bottoming on 9/21... Almost as impressive as the overall gain has been the relentless nature of the advance, as the Nasdaq's longest losing streak over the past 40 trading days is three days... Though the index has slipped in each of the past two sessions, we doubt many bulls are concerned given that the combined total of the losses is less than 5 points.
Duration and resilience of sector/market one key distinguishing factor between the current recovery rally and the big bear trap in April/May... Lower real rates, softer earnings comparisons, more depressed prices (relatively), considerable fiscal stimulus and cheaper energy prices also suggest that this advance will ultimately have more staying power than any of the others over the past 18-months.
The economic risks to the sector/market remain high, but as we've noted on numerous occasions in the past the market will almost always turn before the economy. As long as the economy doesn't decelerate significantly from current levels, thereby pushing out timing of earnings rebound, stocks can and probably will trend higher over the intermediate- to longer-term.
As such, market participants should be looking to use the upcoming corrective pullback to (re)enter long-positions... No reason to get overly aggressive, especially ahead of the November jobs report, but phased in buying of quality names should continue to be a prudent and rewarding strategy.
-- Robert Walberg, Briefing.com |
