Stocks Get Junked

RELATED CONTENT

One Day Does Not a Trend Make

Friday’s gain was surprisingly superficial and breadth was ominously weak. We’ll have to keep an eye on breadth in the coming weeks to see if it is the beginning of a trend or not.

Underlying Trend Is Pretty Strong

The advance is likely to remain viciously selective given the strong cross-currents within the market and the ominously weak longer-term internals.

Watching and Waiting

The market is staging the retest of the early-November high that we expected, and although the advance’s internals remain less than robust, they did not further deteriorate significantly. Hedge funds remain more bearishly positioned than normal.