November 23, 2022

Stock Market Rally Continues

Since my recent posts about the market rally the major indices have held a steady uptrend. What I am seeing now is bonds especially in the ETF HYG actually "leading" equities higher. This happens from time to time in history. TLT and government bonds are leading too. I've been on Twitter a good bit and I am surprised more people are not paying attention to this. You heard it here. The bull momentum in many sectors is strong escpecially pivotal sectors like homebuilding and construction. This is seen in ETF's VNQ XHB.

I now see stocks continuing to move higher after the economic data is currently being shrugged off. A slow grind higher seems to be in the works. Even QQQ is acting bullish. I always stay open-minded and seperate fundamentals from trend when need be as we are seeing now. I learned in 2009 often major bottoms begin and continue on bad economic data and bad corporate news. Fighting an uptrend is futile. The market is always forward looking. Here are some charts to add a little clarity to the bullish sentiment.
hyg stock
qqq chart
vnq chart
xhb homebuilders chart candles