U.S. stocks generally remain on bullish trends in all time frames. Further, the Debt Ceiling (and Government shutdown) theater seems to be playing out in the usual way that these events play out; the stock market has been correcting in an orderly way and seems to be waiting for an inevitable compromise between the White House and Republican leaders. This of course would spur a next leg up if the usual script plays out. That is how it looks, with a traditional bull catalyst (heavy media rotation of an Armageddon-like political event) in play.
Yet there is a negative in play that actually matters, as corporate forward profit guidance is degenerating. Or is it really a negative? Graph from Sentimentrader.com: Continue reading "U.S. Stock Market, Profits & Policy"