In today’s trading session, the S&P 500 (SPY briefly made new, all-time highs before slightly backing off. At the moment, we’re about 10 points lower than these highs. The short-term suggests that dips will likely be small and offer buying opportunities. The reason for this is due to the continued strength of earnings seasons, fund manager positioning and seasonality. One potential concern is that inflation has remained stubbornly elevated and begun to materially impact some companies’ results. Overall, there’s been little impact in terms of EPS growth and margins, however if the situation continues to get worse, it’s only a matter of time before it starts to negatively affect results and outlooks on an economy-wide scale. In today’s commentary, I want to cover earnings season and discuss this potential threat. Next, I’ll discuss themes that I consider interesting for the year-end. Read on below to find out more….Enjoy this version of my weekly comment published on October 21st, 2021 by the POWR Stocks Below $10 newsletter.

Over the last week, the S&P 500 is up by more than 3%. A stock’s movement has been either higher or lower is called a melt-up. Each dip in the stock market has seen aggressive buying that led to higher highs.

Our portfolio has also done well and is now up nearly 10%, while the S&P 500 is up only 1.5% since we began the service on September 13. The market rally is broad-based and should result in trending moves across multiple sectors. We are still well-positioned.

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