“If you are a successful game player, it can be a fascinating, consuming, totally absorbing experience; in fact it has to be. If it is not totally absorbing, you are not likely to be among the most successful because you are competing with those who do find it so absorbing.” – George Goodman (aka Adam Smith), “The Money Game”
As we have been discussing on the Twitter Feed with a lot of accompanying charts, this is far from a strong/healthy phase of this rally. Naturally price can continue to go parabolic but essentially, just a handful of stocks (the broader FANGs) are holding the market up.
Breadth is far from impressive and we have negative monthly closes shaping up in various sectors: Transports, Retail, Health Care, Real Estate. Furthermore, apart from the fact that SPX and DJI have been far from being as perky as NDX, the RUT has really not been impressed with this recent FANG+ ramp.
We still have to get through a lot of headline risk this week with CBs and US data dump on Friday but don’t forget we also have more more earnings, along with Apple… should be very interesting. We’ll just have to be patient and see what shapes up…
As always there is no substitute for real-time/live action; if you are interested in attending a daily morning call into NY with a more detailed live discussion on all the charts and ideas we highlight/review in the outlook video and here on the blog, you should check out our Daily Webinar Group.