This has been a classic v-shaped rally and one of the fastest 10% moves in the history of the market all in the face of non-stop negativity from Wall Street punditry and the financial media.  Today the story has been the economic catastrophe of the government shutdown.  I’m sure that’s not true and while it’s sad to see any American denied or delayed their paycheck, the US economy is going to be just fine.

That being said, the element of disorder beyond garden-variety government dysfunction is a worry.  The debt ceiling that must be temporarily raised by March (because that’s what we do in the United States with all temporary spending programs).  And the delay in information and other ancillary issues will chip away at GDP growth, but it’s not an economic disaster.

It’s a political disaster.

It’s an American disaster.

Meanwhile, the market is looking beyond an oversold scenario as a catalyst for other events that will move the market.   Earnings begin next week and I’m eager to get new guidance levels.

The stock of the day is General Motors (GM).  Shares of the automaker are surging on its Capital Day presentation and commentary. 

With these headlines:

• Projects strong 2019 earnings and improved adjusted automotive free cash flow
• Continues strong launches of all-new truck portfolio in the U.S. and crossovers globally
• Cadillac will be General Motors’ lead electric vehicle brand

Full-year 2019 guidance:

• Earnings per share diluted-adjusted of between $6.50 and $7.00
• Adjusted automotive free cash flow of between $4.5 billion and $6 billion

I’m not sure if we get that last hour rally today but I’m very excited about the market and this snapback rally.