Markets open the week on an upbeat note. Buyers showed up in droves to scoop up stocks at lower prices.
After a choppy start, stocks advanced steadily throughout the session.
The indexes closed green and near their session highs…
- Dow Jones +1.6%
- Nasdaq +1.2%
- S&P 500 +1.2%
- Russell 2000 +0.6%
Sector Round Up
All 11 sectors posted gains on Monday.
At the top…
- Communications (XLC) +2.1%
- Financials (XLF) +1.8%
- Consumer Staples (XLP) +1.6%
At the bottom…
- Healthcare (XLV) +0.6%
- Energy (XLE) +0.3%
- Real Estate (XLRE) +0.3%
After the close on Monday, the sharing image and idea platform Pinterest (PINS) reported earnings.
- Revenue and profits beat projections
- Partnerships with companies like Amazon (AMZN) are paying off, according to Reuters
- At writing, the share price is up more than 16%
- If the gains hold, it will add about $3 billion in market cap
The bears keep trying to mount an offensive, but there is a missing ingredient.
Fear is largely absent from the market. Without fear, the market will rally…
The VIX dropped back below the critical level of 20 on Monday. This morning, it’s lower still.
The uptrend has yet to break. We’re watching for it to break out of the marked channel to confirm the seasonal bottom is in.
We’ve been buying the dip.
Your latest readout…
The last day of October is here. And October contains more market bottoms than any other month.
We maintain October is a good time to buy.
November brings a solid track record. Since 1950…
- S&P 500 – #1 month
- Dow Jones – #2 month
- Nasdaq – #2 month
- Russell 2000 – #1 month
We expect historical norms to hold true. Watch for a rally into the end of the year, barring some unforeseen developments.
Your complete November outlook will arrive tomorrow morning.