Cyclical stocks continue to show more evidence of bottoming. Last week, I noted after a correcting from the highs on June 8, cyclicals in general, were poised to rally.

Over the past week, cyclicals have begun to rebound, and now look poised to rise further into late July. By then, my expectation is that the daily momentum indicators I’ve been watching over the past few weeks are likely to move back toward overbought territory, setting the stage for another pullback/pause well into August.

I appreciate most readers are unlikely to be so short-term focused, but for those investing in the longer-term improvement in cyclicals that my colleagues Tom Lee and Brian Rauscher and I see developing, it’s important to be prepared for these quick tactical swings I expect will continue through 2H20.

Meanwhile, in contrast to cyclicals, growth stocks have had impressive surges since June 8. As a poster child for momentum stocks, Tesla ( TSLA) was up over 90% over the past two weeks and over 400% since the March lows. Impressive to say the least.

The Nasdaq, along with many Software and Cloud/SAAS stocks looked to have hit a short-term reversal last Monday and are likely in pause/corrective window as cyclical stocks rebound. Regardless, many of the institutional growth managers...

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