Rotation Day, Two Top Names
Blue chips and small caps led while tech recovered to flat, and two names reached the top tier for the first time in days, both with earnings close enough to call for caution.
The Signal
Blue chips and smaller companies rose more than one percent, the broad market edged up and the Nasdaq finished near flat after an early tech sell-off. Money flow is almost evenly split. Early bullish turns sit in industrials and financials, early bearish turns in technology and energy, now including refiners.
The Noise
Wholesale inflation came in far hotter than forecast, yet bond yields fell and the odds of a rate increase at month end dropped, so the market shrugged. Higher oil on Iran tensions kept energy strong even as the data pointed to rotation.
Multi-Signal Confluence
T. Rowe Price (TROW): price made a higher low while selling pressure faded, but the trend is still down and the stock is deeply oversold. It reports October 29, so size down or wait.
Iron Mountain (IRM): a higher low with flow turning, backed by a strong August report and raised outlook. The price sits about ten percent above the model's fair value and the report date is unconfirmed.
Valero (VLO), the bearish counterpart: overbought at a fresh high while the money behind it faded. Do not chase strength.