Asking if current 5-session win streak and snapback rally is believable or just volatility to ignore
Tom
Joe Mazzola
Market breadth is improving with cyclical undercurrents - financials, materials, small caps all participating beyond narrow tech rally
Joe Mazzola
Russell small cap move predicated on rate cut expectations - unprofitable companies borrowing at short-term rates become more attractive when rates decline
Joe Mazzola
This is not a normal market cycle due to government shutdown and other factors - can't rely on historical Santa Claus rally patterns
Despite bifurcated signals, equities likely winners due to strong earnings and risk-on sentiment
Tom
Joe Mazzola
Fundamentals strong with 83% earnings beat rates and revenue beats in high 60s - expectations for 2026 actually increased
Joe Mazzola
Options market showing upside call buying in semiconductor index indicating belief in continued tech rally upside
Retail investors driving dip buying as smart money - bought in April and now buying November dip
Tom
Joe Mazzola
Next week data critical - ISM manufacturing/services, Challenger job cuts, PCE inflation, and key earnings from Marvell, CrowdStrike