It is possible that a monstrous bubble is forming in the stock market

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "What is happening right now in a market of Pre-Christmas values ​​could qualify as a mini melt-up, this is not the final stage of an inflated bubble. "data-reactid =" 22 "> What is happening right now in a pre-Christmas stock market could qualify as a mini melt-up, it is not the final stage of an inflated bubble.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" I wouldn't call it a bubble, "said the Invesco chief market strategist, Brian Levitt, in & nbsp;The First TradeYahoo Yahoo Finance. “The bubbles are an extreme deviation from the fundamentals, and I don't think we are at that point. The price / benefit ratio is a bit high, but does not reach an extreme level. Usually, a kind of euphoria is usually encouraged and we are not close to that. People still like bonuses. I think the word bubble is used to suggest that markets are overvalued and I think it is dangerous to confuse both terms. "" Data-reactid = "23"> "I wouldn't call it a bubble," said Invesco chief market strategist, Brian Levitt, in The First Trade of Yahoo Finance. "The bubbles are an extreme deviation from the fundamentals, and I don't think we're at that point. The price / benefit ratio is a bit high, but it doesn't reach an extreme level. In general, a kind of euphoria is usually encouraged and we are not close to that. People still like bonds. I think the word bubble is used to suggest that markets are overvalued and I think it is dangerous to confuse both terms. "

Either way, this is an autopilot market.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Bulls burst hard"data-reactid =" 25 ">Bulls burst hard

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "We must thank the Federal Reserve for its promise of the last week of & nbsp;keep a low interest rate, once again, and its third cut in interest rates for the year. We should also thank the United States Secretary of Commerce, Wilbur Ross, for his bullish comments on Monday morning on the first phase of the trade agreement, which contributed to fueling a market fueled by low Federal Reserve interest rates. . "data-reactid =" 26 "> The Federal Reserve must be thanked for its promise last week to maintain a low interest rate, once again, and its third cut in interest rates for the year. to thank the Secretary of Commerce of the United States, Wilbur Ross, for his bullish comments on Monday morning on the first phase of the trade agreement, which contributed to stoke a market animated by the low interest rates of the Federal Reserve.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The S&P 500 (^ GSPC), the Dow Jones Industrial Average (^ DJI) and the Nasdaq Composite Index (^ IXIC) registered & nbsp;new records& nbsp; just after the market opening on Monday. The Dow reached a new intraday high for the first time since July 16. While the most recent intraday high of the S&P 500 and that of the Nasdaq arrived last Friday. "Data-reactid =" 27 "> The S&P 500 (^ GSPC), the Dow Jones Industrial Average (^ DJI) and the Index Nasdaq Composite (^ IXIC) recorded new records just after the market opened on Monday.The Dow reached a new intraday high for the first time since July 16. While the most recent intraday high of the S&P 500 and that of the Nasdaq arrived last Friday.

At this moment, optimism is breaking into Wall Street.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The actions of Caterpillar (CAT), which is part of the Dow index, continues to increase despite its weak earnings and outlook for the third quarter, about a week ago. The S&P 500, the Nasdaq and the Dow remain well above the increase in their 200-day moving averages. The benchmarks they also closed last week well above their growing 50-day moving averages, according to Gorilla Trades researchers. "data-reactid =" 29 "> The actions of Caterpillar (CAT), which is part of the Dow index, continue to increase Despite its weak earnings and third-quarter outlook, about a week ago, the S&P 500, the Nasdaq and the Dow remain well above the increase in their 200-day moving averages. benchmarks They also closed last week well above their growing 50-day moving averages, according to Gorilla Trades researchers.

A historical record in the stock market and all the false news continue to focus on the assembly of the Impeachment!

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Meanwhile, the Russell 2000 Index (^ RUT) Small capitalization is around its maximum level in one year, after having lagged much of the year. The line of advance / decline of the New York Stock Exchange is at a record level, and short-term interest, or bets against falling stock prices, continues to decline. Investors are getting rid of defensive actions in the basic consumer sector after the summer amid fear of a recession, and are returning to technology companies that often carry a higher risk like Amazon (AMZN) and Netflix (NFLX) "data-reactid =" 34 "> Meanwhile, the Russell 2000 Index (^ RUT) of small capitalization is at its maximum level in one year, after having lagged a good part of the year. The New York Stock Exchange is at a record level, and short-term interest, or bets against falling stock prices, continues to decline, investors are getting rid of defensive actions in the basic consumer sector after the summer in the midst of fear of a recession, and they are returning to technology companies that often carry a greater risk like Amazon (AMZN) and Netflix (NFLX).

In short, market recovery goes full throttle.

“Our long-term vision of actions is quite simple, although it may seem counterintuitive. Slower economic growth will expand the economic cycle, reduce volatility, depress interest rates and margins, and reward business models with little capital, which will result in a greater return of capital for shareholders. Naturally, this context favors low volatility actions and growth actions over value ones, as well as the growth of the United States over other regions, ”said Credit Suisse strategist Jonathan Golub. "Given the changing context, we now believe that investors would benefit if they reorient their portfolios towards value actions on low volatility and growth stocks, and towards cyclical values ​​on defensive actions."

Golub's optimistic views on the actions summarize the current general consensus on Wall Street.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The autopilot market"data-reactid =" 38 ">The autopilot market

Believe it or not, most people on Wall Street think that what we are witnessing with this market running on autopilot is healthy. Valuations do not reach extreme levels, which would be synonymous with a bubble, and a good amount of cash remains, ready to put it to work.

This does not mean that this market rebound can reach 2020 without having been proven. It is very likely that Federal Reserve officials try to deflate the stock market globe, the same balloon they have helped fill out. In addition, the US trade war is still active despite the eventual signatures of President Trump and President of China, Xi Jinping, in the first phase of the trade agreement.

Meanwhile, recovery remains. And if we take into account Trump's tweet about the markets, get ready to have an excellent Christmas season.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Brian Sozzi"data-reactid =" 46 ">Brian Sozzi

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