Tuesday, October 02, 2018

Market Alert - Last Hour

The Dow is the leader while SOX and SP500 traded back and forth at the flat line. Stocks rallied in the morning session, peaked around midday and traded flat, then started lower in the back half of the afternoon session. Bouncing some now as the closing bell approaches, but many are not recovering near support.

Energy, manufacturing, machinery performing better while techs take that break we thought night occur. Thus far that break is very normal. Small caps and midcaps continue to sell off.

Fed chair Powell is getting the blame for the weakness taking over. Powell commented, among other things, that the economy may be 'too good to be true,' noting also that with low inflation and unemployment a testament that we 'remain in extraordinary times.' Seriously? It is good, but not that great. Look back at the 1980's with no inflation, 5%, 7%, 11% GDP growth, 1+ million jobs in a month -- those show what we can do and we are not there yet.

Anyway, we are looking at closing some software positions in addition to those closed earlier; wanted to see if they could recover. The late bounce helps but not helping enough for some.

Also, like perhaps UTX, SPN as entries.

SP500 -0.74, -0.03%
NASDAQ -38.35, -0.48%
DJ30 127.44, 0.49%, was just up only58 points.
SP400 -0.38%
RUTX -1.12%
SOX 0.01%
______________________________________
Jon Johnson, Chief Market Strategist
InvestmentHouse.com

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