Window Dressing

Window dressing the portfolio, marking up, performance chasing, call it want you want. Throw the playbook out the window, this tape hasn’t rallied one point on fundamentals, it’s rallying because of global money printing. Europe is on board, we are on board and China will be on board.

We are in the “re-inflate the inflation” part of the cycle and you cant be short anything. There are five trading days left in the month and the quarter and those that aren’t long enough may try to press what they have and initiate longs in other sectors.

What should do well:

$XHB – The builders have been on fire. No one will be taking profits this week in this sector. Longs may actually press their longs and those that missed this move may initiate positions. How do you tell your investors that you don’t have exposure to the best preforming sector.

$XLE – Many of the energy names have rallied 40 %, but they also pulled back nicely last week. Should continue higher.

$XME – Metals & Mining blasted through he 200 sma day two weeks ago, nice orderly pullback last week, expect money to flow here.

$XLF – The financials have pulled back in an orderly way.  Close to zero rates aren’t necessarily bullish for financials as their margins get squeezed to pixie dust, but it won’t matter.

Technology should play, and $AAPL is consolidating for the ultimate move higher. $GOOG has been acting very well.

The statistics aren’t good for Monday’s following quadruple witching days in September going back many years now, and we all know that Monday’s have generally sucked lately for the market.

I would love to see a lower open tomorrow, as I will be a buyer. I think it may be a good week. $SPX 1500+ is possible. Good luck.

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