Often, you hear about investors riding a bull market, and it sounds like a rocket ship that goes straight up, and all you need to do is sit back and enjoy the ride. True long-term success involves periods when it feels like you are riding a bull. And then there are periods when it feels like you are riding the best bull ever—Bushwacker, who passed away on July 2.

This phase is where technical tests have failed, and fundamentals haven’t helped. But never abandon them because staying true to the work is the best way to ride it out. All eleven sectors rallied yesterday, led by Technology (XLK), which in turn was led by the ‘Bushwacker’ of semiconductor stocks: Super Micro Computer Inc (SMCI).

Buying the Close

There was compelling action at the closing bell as buyers jumped in on the strong volume.

MO-MO

Momentum was back on top, which shows even in the fog of volatility. When it's time to make a move, investors want instant action. The rotation story is real, but the demise of mega-cap names is premature. Although there have been times when low Beta sectors have traded like high Beta, the latter is sustainable once it gets into gear.

Tonight’s Debate

Yesterday, VP Harris added a policy page to her website, primarily vague slogans. Some of it is incoherent, like how higher taxes encourage investing and economic growth. However, Artificial Intelligence (AI) says it won’t work.

Today’s Session

Small business optimism swoons, erasing the big jump in July.  I traced a lot of this to Donald Trump’s poll number.  He was up over Biden, huge in July and down against Harris in August.  But it's worrisome in general, because small businesses drive the nation.

I was impressed with the push into the close, but major indices are still in no man’s land with respect to key technical points. 

Comments

Balancing the budget/eliminating deficit spending. (I can dream, can’t I?) Linda B on 9/10/2024 8:34:45 AM

When politicians use these two ideas in conjunction, run for the hills. (We) Will increase taxes (on the wealthy, plus) and make investments in the future (increased government spending). It never works out that way. The promised inflows, always exceed what goes out. For one reason there are loopholes and exclusions already in place. Any subsequent additions to any tax code changes, will have some form of the same guaranteed... Lobbyist Orgs exist for a reason. Regarding the concept of taxing anyone at the executive corp. level making more than $1M in salary, wasn't that enacted decades ago and lead to the creation of the huge company paid benefit packages (as contract workers) they get now to offset that difference. Here is the question I would like answered: Company stock buy backs occur for a reason and affects more than just those at the top. Doesn't it also benefit the ones who are employed and setting additional saving aside for retirement through 401k's and by other means involving the market? Not to mention that many pension plans (union or not) are invested in the market as well? Terry Dowler on 9/10/2024 9:15:20 AM

To answer Terry's question: Yes, stock buybacks benefit all shareholders, not just top executives. Buybacks reduce the number of outstanding shares, which increases each share’s ownership stake in the company and often leads to a higher EPS and share price. As a result, employees with stock options or 401(k)s, as well as pension funds holding the company’s shares, can also see these benefits. John Jean on 9/10/2024 1:22:14 PM

Bodacious was one of the fiercest rodeo bulls of all time. Champion riders passed when drawing him. Hopefully Trump will be paving the way for a long term bull run Eileen on 9/10/2024 9:29:21 AM

I am interested in tax policy and how each candidate defends their position. Trump has to attack the wrong headed idea of taxing unrealized gains by challenging its constitutionality. For any policy in general, I do not want to hear how this group or that group will benefit even if the moderator asks the question in that manner. Tell the moderator how any policy should be applied the same for all. Ric Walter on 9/10/2024 10:32:27 AM

What will you do significantly increase border security and stop illegal immigration? Charles Ciulla on 9/10/2024 12:56:46 PM

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