Stocks could see a near-term pullback on loss of momentum, strategist says

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We're starting to see a chink in the market's armor, strategist warns. Why she's bracing for a near-term pullback (via TradingNation)

also suggest that some of the market's most popular names may be getting overbought, Stockton said.

"In the last month, for the first time in years, actually, we've actually seen that shift to the lowest-volatility names garnering the highest returns," Sanchez said. "That basically suggests that the market is becoming significantly more defensive. And this is significant because we just haven't seen this kind of a rotation back to that kind of market-conservative stance in a very long time.

"Consumer discretionary, actually, even though it looks very expensive, if you neutralize the earnings part and you assume that earnings will be able to get back to normal in the next 12-18 months, that part of the market actually probably could do very well," said Sanchez, also chief market strategist at Lido Advisors.

 

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