From Cabot Top Ten Trader
Stocks have picked up steam, with the Nasdaq and S&P 500 rising six days in a row and setting new highs, with many growth (and other) stocks snapping right back, too. Thus, we’re basically back to where we were two weeks ago, likely bumping up our Market Monitor a bit, remaining heavily invested and looking for new buys as opportunities arise.
That’s not to say there aren’t still a few rain clouds swirling overhead. Three of the five major indexes we track (S&P 600, S&P 400 and NYSE Composite) are still in trading ranges. The number of stocks hitting new lows is a bit elevated, another sign that there are growing divergences out there. And we’re seeing some money flow into defensive areas (consumer staples, etc.), which could be the early signs of rotation.