E Market Briefing For Thursday, July 23

Actionable ideas emanating from most technicians and strategists continue more or less the same tune they've been playing for months, ie: the S&P must decline. It's not that I disagree, though we have approached it differently: given our belief this is an S&P with overhanging 'correction risk' clouds. However it's also a persisting S&P (and Nasdaq) ongoing advance with the 'silver lining' being the noted bifurcation I have pointed-out for months at this point.

Such a 'bipolar' nature of this market contributed periodically to a 'broadening-out' of the upward evolution (we have had shakeouts along the way) and more recently the sector rotation, that was a good thing with respect to holding S&P up in the trading range and even a bit above, but not so good because it wasn't a true broadening in the most recent phase, but rather an either-or situation.  

 (Hint: it might dip, but it's not a jammed overbought market as naysayers contend.)

That was demonstrated less by individual stocks but my labeling the 'market' as sort of a 'rope-a-dope' pattern. Whether the super-cap monsters or the biotech super-hot speculations, they alternate almost daily (sometimes hourly) with 'circuitous' action, which isn't necessarily a bad thing if the evolution evolves to higher levels.  

While it's incredibly difficult to divine that short-term behavior for individual issues, it is notable that every time it happens the rotation kicks-in and you jockey too-and-fro. So that's the 'silver lining', while I don't at the same time deny the prospects that this is long-in-the-tooth, ironically more so for the super-caps than for the biotechs. Now that Pfizer (PFE) (we mentioned them as a contender weeks ago) got a commitment from the President (provided further testing is successful and so on), it should move into the low 40's (perhaps after 'sell the news' profit-taking in the morning, initial jump or not, since the story came out at noon).

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Gene Inger 3 months ago Author's comment

Thanks kindly William... I usually delve into the 'psychology' of the market more in my nightly videos; which are not posted here in fairness to paying subscribers at my www.ingerletter.com website. In fact I should require these excerpts be reduced further in fairness to me! haha. Stay safe in this crazy time.

Barry Glassman 3 months ago Member's comment

You are right about that William!