In This Issue:
Stocks stuck in a trading range...
Leaders head down
PEs still showing 'earnings-less' recovery
New home sales down, re-sales up and final GDP number in
Uptrend still alive but...
Elliott Wave SPX Perspective
Quote of the week
'Stocks are the worst inflation hedge ever invented.' - John Brynjolfson, CIO Armored Wolf in a Bloomberg interview this week.
Stocks stuck in a trading range...
Stocks ended basically flat on the week with some sectors higher, and some lower as the consolidation continued. On a daily basis, stocks are now oversold which is positive short-term but remain overbought on a weekly basis.
But are investors who are betting on higher prices being overly optimistic? As we said last week, the fundamentals and especially earnings are weak but both generally lag in a recovery. But at some point, both need to show steady improvement if a recovery is to grow legs....