On Monday, eight of eleven sectors were higher, but the overall market was held back by weakness in Technology (XLK) and Communication Services (XLC). Yesterday, Growth sectors, including Technology and Communication Services, edged higher, but the overall market finished fractionally lower.

Momentum names were back on the top advancers list, including Palantir Technologies (PLTR), which has been the eye of the storm of short sellers that have been wrong about the company since day one.

Fear & Greed

Breaking news! The Fear & Greed Index is back in “neutral.”

Meanwhile, the Volatility Index (VIX), known as the Fear Index, is hovering at a very non-threatening level. There isn’t ‘fear,’ but you can cut the trepidation with a knife.

Retail Sales

Some are saying retail sales influenced the market more than the jobs report. The “control group” (see above) surged. Total sales, excluding motor vehicles and parts, came in better than expected, with positive surprises across furniture, sporting goods, and department stores, which saw stronger growth than the internet. But food away from home, which has become the most significant “flex,” declined in September. 

The Economy

The Atlanta Fed GDPNow estimate eased to a healthy 3.5% from 3.6%.

Coiled Spring

The market is starting to coil.

I still think we are going to see a Santa Claus rally, and it looks like artificial intelligence (AI) and mega-cap tech darlings will have to lead that charge after all.

Today’s Session

The market looks set to open higher, but is still grappling for a catalyst.

There was a spike in Wall Street upgrades:

• BTIG puts “buys” on ServiceNow (NOW), ServiceTitan (TTAN), and Zoom Communications (ZM)
• Truist lifts Robinhood Markets (HOOD) to a “buy”
• Stifel reiterates “buy” on Cloudflare (NET)

Additionally, there were upgrades in the quantum space from Wedbush, and Bank of America says Palantir (PLTR) is in a league of its own, while hiking its target to $255.

Lots of action in the AI world, including reports of Amazon (AMZN) taking a stake in OpenAI. Shares of Amazon popped after the close when the story broke. Additional scuttlebutt suggests the investment would be in the form of a credit, which would be more fodder for those worried about the complex financial dealings.

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