The Stock Market Looks Temporarily Exhausted -

The Stock Market Looks Temporarily Exhausted

Nov 17, 2024Jeremy ParkinsonFinance, No picture0

“Knowledge born from actual experience is the answer to why one profits; lack of it is the reason one loses.” Gerald M Loeb

Market Commentary: The rally looks temporarily exhausted. Look for pullback opportunities.

The Advance/decline trend on the NYSE weakened; the Nasdaq line broke down to a low and is outright scary.

This week’s 52-week new-high/new-low numbers indicate higher risk as well. Already we are seeing more new lows than new highs.

The recent price moves on individual stocks are absolutely nonsensical with outrageous gaps up and down. This makes people lose faith in any valuation metrics.

It is more of a stock pickers’ market than usual as momentum factors are currently exaggerated, which is fine by me. It seems like the trading algos are running the show. I believe this to be the cause of the next “flash crash, fairly soon.”

Economic data and market clues: Earnings season remains in full gear this week with all eyes (too many?) on the Grand Dame of this market, Nvidia.The President-elect’s appointments will continue to be in focus, and you can see reactions around the sectors his team will address. “Big Pharma” got their taste last week.Housing data is in focus this week. I think the under-supply remains the clear story here. Selected current ideas (It is OK to be holding some cash here) Magnet® : Shift4 Payments FOUR Celestica CLSVistra VST FACTS:HealthEquity HQYClorox CLXTechnip FTI FTI For more information, contact us.More By This Author:Don’t Confuse Brains With A Bull Market, Or Price With Value
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