Five Straight Days, Longest Win Streak All Year

The stock market is looking very good so far today. But with our recent reversals, I don’t want to say anything is locked-in until the closing bell rings.

This looks to be our fifth up day in a row which is the longest streak this year. The S&P 500 has been as high as 1,977 today which is more than 100 points above last Tuesday’s low. That’s a huge turnaround. All sectors but Healthcare are up today. The Cyclicals are leading the way. One of our favorite Consumer Staples, Hormel Foods (HRL), just touched a new 52-week high.

One of the few things that’s down today is the VIX. It’s currently just below 20, and it has a good chance of closing there today. That’s been my trigger for our “all clear” signal. The VIX has been above 20 for the last 30 days which is the longest streak since early 2012.

Wall Street is still adjusting to the bad jobs report on Friday. The futures market has almost completely walked away from the idea of the Fed raising rates this year. The futures now see one rate hike in March, and another one late next year. Just a few days ago, the six month Treasury was near 0.3%. Today, it’s below 0.05%. This has been a major change in the market’s outlook.

Posted by on October 5th, 2015 at 12:28 pm


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