Payne's Perspective: November 11, 2019: Cash & Carry
I’m usually not a fan of trivial market news; however, the three major indices have been higher in the past five weeks, which I find intriguing.
Nonetheless, it often comes down to useless stuff, such as the market is down in three of the four sessions - so what? Instead, I like to look for small nuances for the character of the market, and last Friday was the perfect session to exemplify the state of the rally.
Friday felt a little ho-hum, although the overall market bias had shifted decidedly to the upside and the rally couldn’t gain traction. Then halfway through the session, it was reported Southwest Airlines (LUV) pushed its timeline for the return of the Boeing (BA) 737 Max to March 6, 2020, at the earliest. The news sent shares of Boeing lower, taking the already struggling Dow lower as well.
At this point, with just a couple of hours left in trading, it appeared the ‘Big Board’ would finish the session lower. Somehow, the index overcame the big hit to its most important component and rallied into the close. The gain was slim, but that’s not the point. Buyers that have missed the rally but had the luxury to wait for dips now seem to be more panicky.
The fear pendulum swung over forward afterward and missed the rally. It’s clear the train is leaving the station, and it’s time for professionals and other fence-sitters to be onboard.
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