S&P 500 short range oscillator (a paid subscription) is in overbought territory.Worrying, but reasonable because we had a 6 day rally! the market might have gotten ahead of itself.
Other factors that are just as important are 10 year treasury yields, which close to 5% put downward pressure on stocks. A retrieval from the 5% mark is what fueled this rally. We want the yield to go even lower.
Oil is at a two month low, $80 a barrel. Russians and Saudis say they will extend production cuts, which will help keep oil prices "higher". Meanwhile, natural gas is under pressure (pun intended), down 4% just today.
Stocks I have my Eye on
Constelation Brands (STZ) PT raised to $293 by Barclays. Top stock in the drinking game. Best beers, best wines.
D.R. Horton (DHI) homebuilder Horton reported Revenue and Earnings beat. Company also gave promising guidance, exactly in line with our investing strategy/market philosophy. Interest rates will go down, housing demand will increase and we want to ride this wave. Currently we are in the very early stages, since interest rates have not actually come down yet. But this DHI earnings beat might be an early sign of things to come. Stock was up over 2% in early trading.
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