AlphaBull_10M
Oct 3, 1:19 PM
The weak jobs report and worse unemployment rate on Friday initiall sank the 10Y yield sharply, which set the stage for a big market rally, but unfortunately, the 10Y yield eventually reversed back sharply which capped the market rally.
Nevertheless, Nasdaq did manage to hit ATH before pulling back.
Historically, Sept. through mid Oct. during mid-term election years have been challenging, but the AI fueled growth is so strong in big heavily weighted index stocks that the market is still in rally mode.
That said, only ~25% of the big index heavyweight stocks have rallied the index, which is disguising ~75% of smaller and rate sensitive stocks have been going sideways to slightly lower.
In high interest rate environment, it's best to stay with only growth companies with minimal debt pressure. Once inflation and rates come down (who knows when), the other stocks will get a chance to rally.
$SPY $QQQ $IWM $SOXX $DRAM
