The market continues with last week’s rally with leadership spread across several sectors, reflecting bottom fishing.  All the big winners are names that heretofore were under pressure and off all-time highs. 

Technology

• Analog Device (ADI) got the blessing of Goldman, which moved to buy from sell, sending shares rocketing almost 6%.
• Advanced Micro (AMD) got a target upgrade to $40 from $35 at Bank of America.  The stock has a lot of haters and 11% of the float is short.

Consumer Discretionary

• Wynn (WYNN) and MGM (MGM) are popping on strong data out from Macau.
• Best Buy (BBY), PVH Corp (PVH) and Kohl’s (KSS) are attracting bottom fishers.

Financials

• Citigroup (C) is leading the way, which is intriguing considering a very bearish call from the firm.

Industrials

• FedEx (FDX) and General Electric (GE) are up as bargain hunters seek value.
• Kansas City Southern (KSU) is up on Mexico news.

Communication Services

• Facebook (FB) and Alphabet (GOOG) leading the way: are these now value investments?

The rally is giving up some gains on headlines that House Judiciary Chairman, Jerry Nadler, announced a deal with the Justice Department to receive some documents from the Mueller Report related to obstruction of justice.

I don’t think we are at a Constitutional crisis, but this kind of news has led to wild speculation in the past. It keeps alive a topic most Americans and Wall Street believe has been adjudicated.  For now, the bias is to the upside, and the pressure is on money manager and fence-sitters to make moves.

The big theme of the session is caution via stock selection – value before momentum.