This rally is taking on some particularly curious characteristics. A few weeks ago post Draghi comments all the pro cyclical sectors saw money flow into them. Based on how many are acting recently, it appears for quite a few of those groups that bounce was nothing but an oversold reversion to mean trade. This is different than the behavior in January when these groups led for 6-10 weeks before giving up the ghost. One name I am going to highlight here is Intel (INTC) which is now down 10 of the past 11 sessions - as the leader of the semiconductor stocks this is not very encouraging behavior. In fact it is near lows of the summer. It is now reaching oversold status so will dead cat bounce sooner or later but if there is any form of global re-growth happening, this is not the type of action you want to see. Granted there is a lot of "death of the PC" talk out there but Intel has more than just PC chips…
Contrast the recent behavior with January – March…. it lends credence to the idea people are buying into this market due to liquidity of central bankers and little to do with economic recovery.
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