Breadth on the NYSE vs the S&P 500 index has
drastically diverged from the S&P 500 index in a bearish manner. The Index remains way too far ahead of
breadth, at least using moving average comparisons that have usually proved to
be correct.
The market is un-inspiring today. Last week, internals
were really bad on Thursday and Friday. It sure seems like today should end
lower based on those prior internals.
FEAR OF MISSING OUT (Seeking Alpha)
“It has been said that you should never invest in a
business that you don’t understand, but the dilemma becomes far more
complicated when the entire S&P 500 is trading in a way that we cannot
understand. At least when stocks were falling in February and March, it was
consistent with the underlying economic reality that was rapidly unfolding. And
while we can certainly humor such explanations like stocks are “rising in
anticipation of economies reopening” or “advancing in anticipation of economic
improvement over the coming year”, frankly these are largely nonsense…
…Make no mistake. I’m bearish. I think any stock market
rise above the 2900 to 3000 range on the S&P 500 is a façade that
eventually ends badly based on the fundamental reality that is not only not
going away but has the potential to get worse before it starts getting better. –
Eric Parnell, CFA. Commentary at...
I‘m still under-invested and may add Microsoft (MSFT) soon,
depending on market conditions. Looking at my momentum indicator chart,
MSFT seems to be the best choice. HD and AAPL are trading at very high PEs
relative to their past. Intel may be too exposed to China and the trade war may
be heating up. If I do, it would only boost my stock percentage to about 30%.
