With S&P 500 (SPY) is trading higher this morning, as investors enjoy a big rally to start the week. That said, growth stocks (and themes) are overbought.
Investors focus seems to be shifting toward favored cyclical stocks and the Financials Sector ETF (XLF) is trying to bottom on a relative basis.
Long-dated bonds have been hit hard, posing the question: Stimulus = Inflation?
There is a possible bottoming in the relative trend for the Financial Sector (XLF) and select stocks?
Stock Market Today Video – October 6, 2020
Twitter: @DanRusso_CMT
Author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
