The Scales are more balanced than last month but are still tipped toward risk and away from opportunity.
Macro folks are sorting out just how bearish they need to get while market folks are trying to figure out just how bullish they should get. From my perspective, less macro-related volatility could help stocks build on their October gains heading into year end. But there isn’t much evidence of that taking place just yet. With that, the inability of the recent rally to show sustainable strength (and more new highs than new lows) suggests caution remains warranted.
Our Weight of the Evidence Dashboard fills in the details and includes a few charts that have our attention heading into November.
