Oil Continues To Move Higher
The markets are a bit weak in early trading. Today is the last day of 3Q, so we could see some support into the close (window-dressing).
Asian markets were mostly higher again overnight, with Honk Kong and Shanghai hitting new record highs.
Bond yields are down a bit, despite a stronger than expected Chicago PMI report. Although the core PCE inflation report checking in just right at +1.8% year/year, so that could account for some of the bond movement.
Other than that, there is not a ton of corporate news on this last Friday of the month. The markets have had a solid week, and growth stocks have continued to distance themselves and extend their outperformance. This remains a trend I expect to continue into year-end.
I am hearing a lot of calls for an October correction. But the market is not yet all that overbought. Additionally, I still believe there are a lot of investors that remain underinvested or short this market.
If and when performance anxiety increases, it could fuel more buying pressure later this year. I have raised some cash as a result of taking profits on a few trades, but I will look to use any upcoming weakness to add back my long exposure.
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