We all know the textbook recipe (or it used to be) ... After a nice long run, large caps / market darlings take a sharp dive. Market churns a bit, then smallcaps and limping dogs lead the way back up to new highs, but the bigs never quite make it ... then the real move ensues.
Here are just a couple things that might fit the script :
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No momentum surges off of the correction lows. The momentum buy signals that I'm seeing in sector indices didn't kick in until day 10. Even $RUT didn't show any significant daily range expansion until day 8 (when it cleared its correction high) and that's been it.
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While 5 of 11 sectors are outpacing total market indices, utilities are still leading the pack.
I think there's still some time to make some money on the long side, but how much longer?
Edited by Sigador de los Lideres, 10 October 2020 - 06:59 PM.
