A divergence has developed between crude oil & the energy stocks. So, if yesterday's breakout in WTI holds, the energy stocks will have some catching up to do.
Some Cracks are Showing Up in the Small Cap Rally
Jan 3, 2024
Before the Open
Total 494 Posts
The earnings estimates for the second half of this year…and for 2025…are going to HAVE to improve for the market to rally a lot more than it already has this year. Excess liquidity won’t be around forever, so the “E” part of the forward “P/E” ratio is going to have to improve in a meaningful way.
The situation in Europe is starting to get a little dicey. This could create problems for the stock market…given how expensive and overbought that it has become.
The Treasury market is testing a key level. If this level is broken, it’s going to be extremely important for the bond market overall…and will have major implications for the fixed income asset class.
The rally in AAPL to a new all-time high will be quite bullish on a technical basis for the stock (assuming it doesn’t reverse quickly). This will be true if one other Mag 7 stock also see more upside follow-through (and we’re not talking about Nvidia).