It was an intriguing session that saw beaten-down sectors rise as risk-reward dynamics shifted.  Oil probably found a bottom, and the tonic real estate desperately needs lower rates.

And cash continues to come out of several high-profile 2023 grand slams performers.

Momentum is our friend, but I’m beginning to watch the Fear & Greed Index, as there is a late rush to jump on the bandwagon.  I have no problem with greed, and even the so-called extreme greed could last for a long time, but we are entering a period where behavioral analysis will serve us well.

With that in mind, we might take profits into strength.  We are not playing the game that we can and will pick exact tops and bottoms. (If you are not a current subscrfiber to our premium Hotline Service, contact your account represenative or email Info@wstreet.com to join today.)

That said, significant changes in your portfolio, and life, come from windfalls, so we would hold some names that could enter a period of choppiness.

The S&P is short-term overbought with relative strength at 79 (see circle). There could be some consolidation before any serious effort to breakout to record highs.

Today’s Session

I’m seeing many more downgrades than upgrades, which is anecdotal but essential to know.

But remember, in the first half of next year, trillion of dollars will be reallocated, and a lot will find a new home in stocks.  We want to be there when it happens.