IBM beat expectations and the complexion the overnight mood changed. But will the mood change hold?
In many respects, the Monday's action was a rerun of the standard COVID trade.
Correlated selling and corrective action always eventually lead to better stock picking.
Is this a short term deflationary setback or the start of a more ominous trend to emerge?
The motivation to get it right is very different than the motivation to be first.
Much of the action has to do with the disconnect recently between the indices and the vast majority of individual stocks.
We have yet to see evidence of the culmination of recent corrective action.
Caution remains the order of the day.
There's no way to disguise investor sentiment when, for the week, the four defensive sectors easily take the top four slots.
The good news is that the market has needed more correlated selling like that which is hitting now in order to form a good low.