It’s been a seesaw session that has seen buyers move back and forth between value and growth. Growth is winning out just as it has all year long for the most part.
There is no doubt investors are playing it close to the vest ahead of the Fed/FOMC and jobs report. By the same token, missing this rally is a mistake. More investors are being forced to recognize this, especially professional investors that have been buying despite their inherent bearishness.
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There are more signs parts of the economy are holding up in the face of runaway inflation. Although prices continue to rip higher, and new orders plunged, Manufacturing ISM came in stronger than expected at 60.8 versus 60.3.
Commodities Up in Price (number of months trend in place)
Adhesives (4); Aluminum (17); Aluminum Products (7); Caustic Soda (5); Copper (2); Copper-Based Products; Corn; Corrugate (13); Corrugated Packaging (12); Crude Oil; Diesel Fuel (10); Electrical Components (11); Electronic Components (11); Foam (2); Freight (12); Isocyanate; Labor — Temporary (6); Logistics Services (2); Maintenance, Repair, and Operations (MRO) Supplies (2); Motors; Natural Gas (4); Nylon; Ocean Freight (11); Packaging Supplies (11); Pallets (4); Paper (2); Phosphates; Plastic Containers (2); Plastic Resins (14); Polyester Resin; Polyethylene (9); Polyethylene Terephthalate (PET); Polypropylene (16); Polyvinyl Chloride (PVC); Printed Circuit Board Assemblies (PCBAs); Printed Circuit Boards (PCBs); Resin-Based Products (9); Rubber-Based Products (3); Semiconductors (9); Steel (15); Steel — Bars; Steel — Carbon (11); Steel — Cold Rolled (3); Steel — Drums (2); Steel — Hot Rolled (14); Steel — Stainless (12); Steel Products (14); and Tin Products.
Recommended
Commodities Down in Price
Wood (3).
I like the action in the Russell 2000, which is still ranged bound but moving toward the top of the range. It’s clearly outperforming its rival indices this afternoon.
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