Monday Morning Musings

The market is rallying in early trading, despite a slightly soft open. Oil is trading lower and natural gas is down nearly -10%, as Ernesto was downgraded and has crude prices down towards $71. This is weighing on the energy stocks, but this should help the rest of the market.

Gold is lower, but so is the dollar this morning. Go figure. Bond yields are up slightly at 4.81%.

Big tech is starting to act better (see INTC and MSFT), which could help the overall market. If we take out last week's highs, I would expect to see some additional short covering. I do not get the sense that a lot of people are correctly positioned to take advantage of a rally this week.

I am surprised how weak the brokers have been. I think these stocks should be valued higher than they are, and an looking for an entry point to add exposure there. Beyond that, I still have ample cash and am looking for a new group that is going to provide some leadership.

A sentiment streak was broken last week. My next post will recap the weekly sentiment indicators.

long INTC, MSFT