The narrow stock market rally continues along. I think the Dow Industrials have been down something like 8 straight days. Small and mids have to be close. My take on them has clearly been wrong this month. And while there seems to be a reemergence of leadership from large cap growth which we also own, I do think the broad market is going to have its day in the sun beginning this week.A number of seasonal factors turn positive this week with small cap outperformance leading the way. One of the things I am watching is what leads the potential rally into 2025. As I have written, I have larger concerns next year not limited to the narrow rally and the giddy sentiment. In a perfect world, the stock market rallies and broadens into January to new highs. That could set up a deeper pullback.Finally, tax loss selling should abate by Friday. Lots and lots of stocks have not had good years. Many people have or will sell those losers against winners in an age old practice. As a matter of course we tend to harvest tax losses throughout the year which benefits clients more. Lazy and/or ignorant advisors tend to do nothing.On Friday we bought QLD. We sold SSO.More By This Author:Pullback! Bears Get More To Chew On
Bears Getting Some Food
Job Growth Report Should Re-Accelerate – Markets Digesting For New Big Run
