The recovery in financial, healthcare and tech stocks point to a year-end rally, says technical analyst Mark Newton of Greywolf Execution Partners.
Stocks rallying while Lee despite the fall in oil prices. Joining us now from the floor of the New York Stock Exchange mark Newton he's chief technical analyst at great acts the part where. Oil prices falling but energy stocks leading the market higher out what do you make of today's market action. You know configure single bit of reversal of the things that happened of the last couple weeks and that being the energy is rallying today receiver I've transportation stocks like utilities are lower. US dollar back at him up on the day so a little bit of reversal we've seen. Lot of people are gonna start to talk. A lot in the next couple weeks about in the virgin trade happening where of this year's worst performing sectors are likely to feel with a little bit of a bounce in the next year. They've got a very crude that we saw correctly yesterday we saw the first broad inventories after really ten consecutive weeks of builds. You know we are leading a lot of people to think of potentially rude you know could be very well near bottom now the lowest level in seven years and so energy. If you look at the popular ETF like actually you know I ate there all right near the lows that we saw back in August and September. And so the risk reward basis and it makes sense to consider that the my iPod support and go at least some fun game but for now. In the market largely in a holding pattern ahead of next week to have one of the more. Widely anticipated that meetings of recent years you know with a bad it's gonna gradually. You know start to normalize and and lift rates and that's widely anticipated that point by the market. You know about 80% chance right now to hike rates but that really hold off in my opinion for sometime to come for the US you know fighting if global. Friend of monetary accommodation and really. You know trying to save face in my opinion for the Fed and really having to move at least initial now before year. So a lot. You like yourself and expect that fed rate hike in so I expect stocks to react the price. Thank you very much right stand on not expecting that that stocks will do much it's just it's so widely anticipated. Despite the fact fitted right stand and and so we. You know we've we've pulled back in and yes and be at this point being down over three days in a row if polling if they're right near 2040 was important. A lot of people are expecting a December you know should be straight higher but you know a lot of you'd think things have happened in the last couple weeks and and namely transportation has been. No way down along with small caps small cap traditionally been the market in December so. You know little bit of atypical type movement in the market and what we normally see. And I however it's important point out that have been the first couple weeks I.