Craig Johnson’s

Stock Market Summary

Monday, September 25, 2017

  • The Russell 2000 Index, representing the smaller market capitalization area of the stock market continued its significant outperformance for the month of September when compared to the larger capitalization indices. Since the recent low on August 28, the Russell 2000 has gained nearly 8% from that low to Friday’s high.
  • The other major market indices had fractional gains or losses for the week after reaching all-time highs earlier in the week.
  • The stock market has been successful in reacting positively to a barrage of negative news-related items this year. The old market adage “that bull markets ignore bad news and bear markets ignore good news” seems to point quite accurately to this current stock market.
  • The strength of the stock market though still has not been able to change overall negative sentiment by individuals and many institutions towards the market. In almost knee-jerk fashion, every pullback is immediately greeted with the expectation of future doom and gloom for the stock market. This lack of enthusiasm is actually healthy for the stock market.  As the market moves higher, it has avoided the emotional excesses that one would expect to occur.
  • The stock market last week had stand out performance from some of the sectors. The Energy, Financial and Industrial sectors gained near or over 2% for the week. The Energy sector extended its streak to five weeks higher following its low in August as oil prices have moved steadily higher.
  • The stock market also had some sectors that moved the wrong way last week with Consumer Staples, REITs and Utilities all down well over 2%.
  • Now that we have moved through August and nearly September, a historically weak period for the stock market, it probably is likely that those that predicted doom and gloom for those months will switch their fear predictions to something like “market crashes occur in October.”
  • The short term, intermediate and long term trends are higher for the stock market.

 


Sources: bankrate.com, bloomberg.com, briefing.com, Dow Jones News, Financial Times, finviz.com, Investor's Business Daily, marketwatch.com, seekingalpha.com, Thomson Reuters/First Call, U.S. Dept of Treasury, yahoo.com and individual company web sites and press releases.

Leonetti & Associates, LLC views or opinions are as of a certain date and subject to change without notice.  The material contained herein is for informational purposes only and obtained from sources we consider reliable. We make no guarantee as to its accuracy or completeness.  References to specific securities and industries/sectors should not be considered recommendations to buy or sell any security or advisory service.  Past performance is not a guarantee of future results. 

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