There are no vacations in this business – at least when part of my purpose is to share my work with others. My announced “vacation” was to roll back from daily commentary to a weekly outlook letter through year-end.  Nevertheless, since we have been in cash for a few days, I promised to keep everyone up to date if the Navigator algorithms shifted back into a buy alert. 

In that regard, the founder’s group received the latest Navigator Core S&P 500 model buy alert this morning as the S&P 500 passed through 3594.50 at approximately 9:50 am EST. The S&P 500 is now at 3607.50 and trying to hold the roundie at 3600. The technical alert presented at 3576.50 in Globex, but I waited for confirmation after the New York open to communicate the signal.

The market has been moving up quickly. If you want to use the information in your own research and analysis, it might be advisable to wait for a pullback to the 21-EMA on a 30-minute chart to enter the market or add to positions.

In one optimistic projection, the S&P 500 may be headed to 4,000. My first target is 3700 or so. I will continue to use an hourly close below the 5-day EMA as a target stop. I emphasize the word “target,” as the context is always important in deciding to exit a market because an attempted rally is failing. The 5-day EMA currently sits at 3588, but changes daily. 

I will cover more detail on this latest buy alert in the my outlook letter this coming weekend. In short, the market finished a minor low on the nominal 20-day cycle Friday morning, and moved out of that low on considerable advancing volume with impressive market breadth. While neither the S&P 500 nor the NASDAQ 100 achieved new highs, the NYSE advance/decline line finished yesterday at a new, all-time high. In fact, the broad NYSE composite is on deck for an astounding 10% gain in November.

I am pleased to say that my recent favorite stock sectors are leading the way again. Namely, Energy (XLE) and Banks/Financials (XLF and KBE) are the top performing sectors, up over 2%. The price of a barrel of oil itself has climbed to $45 from $40 over the past 10 trading sessions.

The market remains lofty, but healthy. Investors continue to take profits in the FAANGMAN stocks and roll the funds into the economically sensitive sectors now expected to recover from the Pandemic on vaccine news. Small Caps and Industrials also continue to benefit from the rotation, with the Dow currently conquering 30,000 intraday.

While the election controversy looms, the market is looking forward. Investors believe that the future for real economy stock earnings looks bright – at least for now. Vaccines portend that a return to normal is now just a matter of time.

Enjoy your holiday – I won’t be commenting further unless something significant warrants it.