Soporific market action characterized Thursday's finish; ahead of the 'bow' by Hillary Clinton. Markets earlier did behave as suspected; with a Facebook-led (FB) rise that was sold into. The fairly common later rally into mid-afternoon held thereafter.
Markets only responded briefly to sloppy auctions; to poor economic worries (Ford (F) this time, with the optimists rationalizing it as a continued shift to trucks not cars); and hardly to the spin out of Germany, where Chancellor Merkel suggested terrorist groups like ISIS 'want' to push Berlin into a less-compassionate status, and 'force' them to not accept refugees. Interesting perspective; with political overtones.
There is also an Italian banking issue out there; as well as a bunch of sloppy stock reports; though now they need an Alphabet (Google) lift to perpetuate the myth of a stronger market ahead. Sure, there's plenty of money on the sidelines; there's not a great deal of interest (nor should there be) in investing at these levels; and there's a growing desire (we concur) to buy 'when' valuation realities are restored.
I also see nothing changed with a pattern of this market coming back from the edge of selling off, but never quite enough to spark any truly interesting upside.
Earlier this week I shared long and short-term Oil sector charts. This matters, and is probably more a key to future direction than generally recognized. Earnings are not being taken down a lot as far as expectations, and that's supposed to be quite favorable. Not necessarily; because you'd need numbers to be elevated in order to justify market levels. For Oil, watch and see if the dividends are as safe as most of the oil companies claim. Hopefully they are; but worth keeping an eye on.
Market Briefing for Friday, July 29
There's not a great deal of interest in investing at these levels, and there's a growing desire to buy when valuation realities are restored.
Disclosure:
None.
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