Markets rallied over 4% last week and this morning the follow through looks healthy… but as headwinds lurk, the questions remain, should this rally be faded, or traded on a pullback?
I wish I had the answer, but it is impossible to know, just follow trends and stick with disciplined exposure and risk management.
We talked about small-cap healthcare last week, and that still looks good. Today, we are seeing consumer discretionary names lead, including auto’s, internet retailers, restaurants and home builders.
Some positive news out of the July ISM report showed orders down but prices contracted, and that was more positive. Markets took that in stride and bid up almost all of the sectors.
Twitter: @PeteCarmasino ( https://twitter.com/petecarmasino )
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