The stock market has momentum and a steady cadence like an ancient Phoenician Bireme warship cutting through the Mediterranean Sea. Most oars move in the same direction and have the same purpose.

September to Remember

The market ignored all the noise about seasonality and other concerns to stage a phenomenal September run.  

Over the month growth led the way, followed by the tech-laden NASDAQ composite.

Exclamation Point

Yesterday, nine of the eleven S&P 500 sectors were higher in a session that was a perfect exclamation point for how the market defied the odds and historical precedent.

I was especially impressed with Technology (XLK) stocks, which struggled early in the session before staging a nice rally into the close.

It’s Back

Don’t look now, boys and girls, but the Fear & Greed Index is back in ‘extreme greed,’ which suggests there could be a parabolic move higher from here and, at some point, a sharp pullback.

Broader Rally

Over the past month, 57% of the S&P 500 constituents have outperformed the market, and 71% during the past two months.

However, over longer stretches, individual outperformance has been thin.

In fact, over the past year, only 15% of individual names have outperformed the broad market. This suggests that the broadening could continue.

You can feel the drums in the air and the cadence coming from an ancient warship.

Take the Money and Run

After the close, we learned Michael Dell, chairman and CEO of Dell Technologies (DELL), sold $1.2 billion of his stock at $122.40.

The stock popped a week ago on strong volume, lifting the shares above the 50—and 200-day moving averages. I’d like to see them hold.

Dallas Fed

Like the Chicago Purchasing Managers Index (PMI) release, Dallas Fed manufacturing data beat the consensus by a de minimis amount but was still negative.

Suddenly, everyone is talking about the election.

All

Manufacturing

Services

Election Angst Grows

Today’s Session

The market has the wind in its sails as it heads into what is typically the strongest quarter of the year.

To put it into perspective how solid this rally has been, the S&P 500 has been up in 34 of the past 48 weeks – a rare feat.

This is Jay Powell’s stock market rally, which is remarkable because it was born out of a rate-hiking cycle, not an easing cycle. Usually, the Fed easy part is cutting rates unless they begin too late. Although far too many Americans are hurting, the official data will mask enough pain for a soft landing to be claimed and celebrated.

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