#TLDRstocks "Turnaround December Despite Sagging Market Breadth"
Stocks and indices included $SPY $SPX #NASDAQ $COMPQ $IWM $BILL $SMCI $ASAN $INTC $LULU #AT50
Stock Market Commentary
It probably seems odd using “turnaround” as a descriptor for December’s trading. After all, the S&P 500 and the NASDAQ continued their respective melt-up trading action. Yet, small caps diverged and trickled downward all week. So I am intrigued by a collection of stocks that are making and often completing turnarounds from selling pressure from earlier this year. These turnaround stocks are happening without market breadth breaking above the overbought threshold and even sagging to start the month of December. The message from the market is a clear bias to buy. With so much of the market experiencing soaring rallies this year, the turnaround stocks provide an opportunity for latecomers and previous skeptics to play catch-up.
Meanwhile, the November jobs report showed little aggregate change but significant demographic shifts under the cover. As has been the case in recent months, the stock market barely responded to the jobs report. Apparently, the market also thinks the Fed remains on track to cut rates this month. The bond market delivered perhaps the most telling response as long-term yields dropped for the third straight day continuing a relief rally started after Trump’s pick to head the U.S. Treasury. Apparently this rally has legs. Thus, the stock market gains yet one more tailwind, and turnaround stocks should benefit further.
#shorts #stockmarket #technicalanalysis #marketbreadth
