US stocks have started this week on the front foot after suffering their worst September in 20-years as bond yields started to pullback after weak US manufacturing data reduced concerns that the Fed would tighten rates too hard, too fast. Under the hood it appeared like exhaustion had confronted the sellers with over 97% of stocks rallying as the market delivered investors their best day since July – this ties in with our view that with a market so bearish there will be few sellers left to weigh on the index.
- After the pullback over the last month MM remains bullish US stocks looking for a test of its Augusts highs into Christmas.
- As we said last week “when we do eventually turn / bottom the recovery is likely to be swift” – perhaps last night was the start of such a change.
MM remains bullish US equities into Christmas
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