Coming to the end of the year, Pete's focus is primarily on the market and the mechanics of the market in general. Another sell off is in progress today as the indices and stocks that had big moves higher are now acting like a bear market rally. Specifically, the direction in the NASDAQ is negative and Pete digs into that using a ratio chart of NDX over the SPY.
Right now the markets are green across the screen, but Pete urges caution due to the CPI coming out tomorrow. Pete takes a look at trends today, including the oil market looking at a pullback in the commodity and how it could affect the industry.
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It's a bit of an ugly market today. Dow is down over 400 points, Nasdaq down about 1.5% Russell Down 2.4%. It has been an interesting last 2-3 months with seeing some names really rise in the face of uncertainty and looking at the market reassessing some things.
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Pete gives a run down of the current markets which appear to be taking a break from a pretty good run in the last month. With industrials and materials still looking strong, he's feeling cautiously optimistic as he goes through the sector rotation today.
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