This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Today's Markets: One Is Not Like The Other

TheStreet Premium Services

A complimentary preview
of Options-Profits Previews

Looking back at the market over the course of the past few weeks we have seen the following: A fervent rally in equities, a rally in precious metals, a rally in bonds (interest rates lower), and a sell off in the dollar. Looking at this landscape from 30,000 feet, I say to myself, "one is not like the other, and something has to give". In my opinion it will be equities that lose in the end, as Adam Smith's "invisible hand" will eventually bring them back in sync with the current dynamics of the market.

Currently the E-mini S&P 500 future for December delivery sits at 1762, up three points on the day, and more than 100 points higher than the lows experienced in the contract during the height of the debt negotiations on Capitol Hill. This rally has come on the heels of weak economic data, such as the September jobs report and consumer confidence, as well as an earnings season that has thus far been fairly strong, however followed by downbeat language for Q4 projections.

I tend to believe that the negative Q4 outlook by corporate America is the key takeaway this earnings season, as it implies a cloud of uncertainty remains at the forefront of the minds of those who ultimately drive our economy. This uncertainty revolves around the pending debt negotiations that we will once again come face to face with in early 2014, the uncertainty around when the Federal Reserve will scale back its quantitative easing program and general uncertainty around our ability as a country to escape this anemic sub 2% growth cycle that we are in. With such doubts, it is unlikely that we see many companies looking to significantly ramp up operations in the final three months of the year.

Having said that, our trading desk remains extremely cautious with the broader market. Probably more so than we have been at any other point in time during this run-up in the S&P since 2009. While Q3 earnings have been an upside surprise, it is my belief that this market is less concerned with fundamentals and remains infatuated with the easy money policies of the Fed. While this has created a nice wave to ride, corporate America is pointing to an uncertain future. And uncertainty never bodes well for the broader market.

Travis McGhee


EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

At the time of publication, Travis McGhee held positions in SLV.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
Top Rated Stocks Top Rated Funds Top Rated ETFs