This Stock Market Rally Can't Be Trusted. Here's Why.

The stock market has been on a tear and investors are hoping for more gains. Rosenberg Research’s David Rosenberg offers three reasons not to trust the rally.

But can stocks keep rising? Rosenberg has his doubts. In a report released Wednesday morning, he calls the market’s rally “rather junky” and offers three reasons why: earnings, short covering, and breadth. And it’s not like the rally has been driven by the companies with strong fundamentals. Instead, the biggest gainers have been the most-shorted stocks, Rosenberg says, as well as those with weak balance sheets, what he dubs “non-profitable tech.” This is a sign that “this is a reflexive

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock Market Rally: How Long Can It Last?Hefty gains over the past week are bringing smiles. But what the Fed does on rates is still the big X factor.
Source: MarketWatch - 🏆 3. / 97 Read more »

Another top Wall Street strategist says last week's spectacular stock-market rally will soon fizzle.Joseph Adinolfi is a markets reporter at MarketWatch.
Source: MarketWatch - 🏆 3. / 97 Read more »

Why Stock Market Rally Can't Be TrustedEarnings, short covering, and a lack of momentum for the Russell 2000 suggests caution might be warranted.
Source: MarketWatch - 🏆 3. / 97 Read more »

‘Stock-market correction is over’ after broad surge amid ‘epic’ market ralliesYardeni Research breaks out winning sectors in the S&P 500’s surge last week
Source: MarketWatch - 🏆 3. / 97 Read more »