Today's Rally Not Being Fully Embraced
The rally has held up well, with the SPX still up +2% as of this writing. Despite the strength, there is still considerable skepticism on the Street.
- The VIX is still above 30
- The ARMS Index hit 1.36 today
- The CBOE put/call is at 1.22, an elevated level
- The ISEE Index is low at 127
So there are few signs of renewed optimism with today's events and market reaction. The wall of worry is as high as I can remember. According to Hays Advisory, the market is more oversold than it has been in 40 years.
Investors are so skeptical that most now believe that Fed rate cuts will do nothing to help the markets. I disagree, and all you have to do is go back to 1987 or 1998 to see that rate cuts can have a powerful effect when they catch the herd leaning the wrong way.
Here are some stocks on my radar making strong moves off of, or back above, their 50-day averages:
- DCO, HPQ, PFBC, AMZN, CROX, SNDK, RIMM
long CROX, RIMM