Market Briefing For Monday, Nov. 4

Skepticism reigns supreme as the S&P surges to record highs. All the increasingly dubious pundits and outright bearish technicians are missing something a bit surprising: the bifurcated nature of this market. If viewed in this way, it shows the difference between dormant Industrial stocks, versus the FANG type expensive 'grand dames', as clearly defined as a political poll about candidates or impeachment prospects. 

What's somewhat odd about this is that neither the S&P's cap-weighted or structural split, or US political divisiveness, really (at least so far) is impacting equity prospects. What does matter here is getting a deal with China; seemingly illusive, while we do see it coming together 'this' month based on Navarro's comments Saturday morning as well. So for now the question is whether post-news-spike selling occurs.

 

 

That's of course the question, and I'll address that in the main video. It may depend largely on whether or not the uber-strong S&P has by that time corrected again, or just just languishing at high levels, since it is a bit unrealistic to expect it to surge forward at this angle-of-attack for a long time, once the benefits of short-covering scrambles subside a bit.

  

Even the political scene may take a bit of a prolonged pause; given a Federal Judge potentially slowing the brisk pace of inquiry by declining to rule on whether a key witness needed to testify before the House of Representatives. Instead, he gave relevant parties several more weeks to prepare their arguments. That raised a prospect that public hearings on the president's conduct (regardless of both sides obvious biases as we'll not debate now), could drag on into the holiday season; that's a scenario many in the Democratic leadership once hoped to avoid.  

  

In-sum: while the Bears or even some very skeptical normally flexible managers, have been shorting and fighting the Fed and this market all year (and continue doing so); the S&P has worked higher as outlined.  

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Gene Inger 8 months ago Author's comment

Charts aren't opening automatically; however I don't post this directly. ALSO if you are attending the Trader Expo Show this week; I'm speaking (an open forum workshop) on Friday Nov. 8 at 1:30 pm (at Bally's Las Vegas). During this week we have a 'show special' so if you subscribe to our Daily Briefing we'll include the intraday MarketCast service at no additional cost for the first Quarter. Visit us at www.ingerletter.com/subscribe

Beating Buffett 8 months ago Member's comment

What do you mean? The charts look good to me.

Gene Inger 8 months ago Author's comment

You're right; it depends. I checked on my iPhone and they look fine. On my iMac (using Firefox) some setting prevented them opening. Thanks for your interest in my work. (full MarketCast with my videos less than half price for the 1st Quarter at our website this week only due to the Trader Show in Vegas... though you won't it noted). Just subscribe to Daily Briefing and we'll upgrade at no charge.

Beating Buffett 8 months ago Member's comment

Thanks for the explanation, Gene.