My Only Concern

Normal follow-through behavior yesterday with prices rising, especially in the growth stocks, along with volatility (VIX) declining, My only concern is that the larger, better, dividend paying, low volatility companies didn’t participate. They have been hit hard over the month so it was good to see them rally so strongly on Friday. Yesterday (especially many of the utilities) opened weak and stayed weak. This has happened before and the bull market continued but eventually money is going to have to consistently rotate back into them to sustain a longer-term bull market. XLU and SPLV are your compass for this.

Today the market is slightly overbought. A third day of major index rallying will go a long way of continuing to quieting nerves and attracting capital back to the market.

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