Last night, we had a market begging for a lime in the coconut.
Hence, I wrote a Daily for you that offered hope by looking at the bigger picture as of right now.
Today, that hope became the market’s gain of nearly everything it lost yesterday, especially in the Dow.
In some cases, the instruments flew to new highs or at least, took out last week’s resistance levels.
These instruments then looked back at the laggards with the message to “git along little dogies.”
The Russell 2000 (IWM) was a big tail wagger.
On new all-time highs, yesterday’s dip to nearly 160-where it had broken out from, was mildly bought into yesterday’s close.
IWM opened right above the resistance I wrote about in the ETF commentary that had to clear, “Russell 2000 (IWM) 162.35 now resistance to clear.”
With today’s low in IWM 162.36, dip buyers became strength buyers and off our dear old Granddad went.
Like the photo, will the laggards proceed to trust the Russell’s and run to play catch up?
I read a statistic concerning the laggards we will call value stocks.
Compared to growth stocks (or the ratio between value and growth), value stocks have fallen even further.
Current ratio between the two is at multi-year lows.
VUG or the Vanguard Growth ETF is nearing all-time highs at 152.38. (Today’s close 149.20)
VTV or the Vanguard Value ETF, although not so bad looking on the Daily or weekly charts, is nearly $8.00 away from its all-time highs.
VTV entered an unconfirmed bullish phase today on the Daily chart. It’s been in one on the weekly charts ever since late 2016.
Although the big money remains in growth, the move today in the Russell’s in particular, have brought in value buyers.
One reason VTV did well today is because energy.
Energy has been behind the 8-ball. It’s now up over all the key moving averages on 3 timeframes.
I checked out the recommended 53 value stocks listed by UBS.
One on that list is Kohl’s (KSS). Typical of consumer discretionary stocks, KSS has huge potential.
You can look up the list on thestreet.com. Or, you can watch the ETF VTV.
Either way, watch value stocks as we head into the second half of 2018.
Missing this rare opportunity will have me singing,
“Whoopee ti yi yo, git along little dogies
It’s your misfortune and none of my own.”
S&P 500 (SPY) Cleared 270 right on the open. Now we are back looking at 274 resistance
Russell 2000 (IWM) Last week I wrote if holds 160 next stop 164 and then the target 168.
Dow (DIA) 245 cleared so now back to support. 250 still the big one
Nasdaq (QQQ) Back to the top of the most recent trading range-169 has to hold and over the gap to 170.93 still has to be filled.