It's been tough sledding and you can cut the tension with a knife. Looks like investors are positioned for momentum (Energy) and oversold bounces (Technology and Consumer Discretionary).
The biggest declines are in Utilities and Consume Staples, which underscores an important lesson. These safe havens become a lot less safe when they are trading at or near historic relative valuations. A 25 PE for a tech stock is a lot more acceptable than a 20 PE for a utility.
I think the market is going to rally into the close, but the last time I felt that way, it stumbled and only stopped going down because of the closing bell. I still think we have to hold more cash than usual, as we head into the FOMC decision tomorrow.
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