Stocks ended the week, month, and quarter higher as the bulls remain in clear control of the market. The great mini-rotation, a term I coined a few years ago, remains alive and well. The great mini-rotation refers to a bullish event that happens when big money rotates from one out-performing sector to another under-performing sector without the market moving lower. We saw this take place in the second half of the third quarter: big money rotated out of high beta-growth stocks and into under-performing areas of the market such as the small-cap Russell 2000 and the DJ Transportation index. Meanwhile, the S&P 500 and the Dow Jones Industrial Average continue trading near/at record highs. At this point, the market remains very strong and the fourth quarter tends to be a seasonally strong period for the market.
Thur & Fri Action:
Stocks rallied on Thursday after GDP came in at 3.1%, matching estimates. The small-cap Russell 2000 hit a fresh record high, leading the other indices. Stocks were quiet on Friday on the last trading day of the third quarter as several of the popular indices hit fresh record highs.
Market Outlook: Bulls Are Back In Control
The bulls are back in control and the market remains very strong. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…