Will The September 2012 Rally End On A High Note?
Stocks are rebounding from lows today (at 11:45 am) as investors look for buying opportunities after a few days of declines last week. Apple fell below $700 today but this didn’t discourage investors from looking at other equities. Apple’s new iPhone 5 was a hit with consumers this weekend although many stores ran out of the iPhone, but we saw lines of people signing up to order it. Rumors are out that the conference for the iPad mini could be mentioned in the next two weeks.
The financials, small caps and tech look strong which makes us more bullish. If stocks can find new short-term support levels after the Fed announced its massive bond-buying program – QE3 last week, this could give U.S. equities more room to go higher. September could end on a positive note if portfolio managers are continuing to chase performance. We are bullish short term and believe there is a strong possibility November 2012 could begin in rally mode.
The Russell 2000 exchange traded fund rallied t0 $87 and stayed above the $82-$83 range which is a positive sign the September 2012 rally is still in tact.