Tom’s Blog On Markets & Investments

With an hour to go in US equity trading, growth indices are outperforming value stock indices, large, mid and small cap, about 2:1, across the board.  Growth is up about .75% and value shares up about half that.  The VIX is at its lowest level since the Lehman collapse last fall.  The Energy and Materials ETFs, XLE and XLB, are up better than twice the SPY.  The Financial ETF, XLF is down almost a percent on the day.  None of the KBE, KRE, KCE or KIE ETF indices are up.  While this action is helping my portfolios, I’m going to stick with the traditional interpretation, which is, financials not participating (they are all down in an up market), therefore this rally is not likely  sustainable and not to be trusted.

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