Seasonal Rally Ahead
Mid-sized and smaller stocks are struggling to keep pace with their larger brethren. They are not losing much ground, but they are not leading either; broad-market leadership is what we’d like to see if the rally is to be sustained.
I believe that we have seen the traditional fall stock market lows in the form of a W bottom and are setting the stage for a seasonal rally into next year. As a matter of tactics, we are looking to buy the next pullback, an opportunity that may come this week.
John Bollinger, Capital Growth Letter, www.bollingerbands.com, 310-798-8855, October 12, 2015