After a 9% gain in 6 days, the stock market is nearing 'overbought' territory, some traders say

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Some bank stocks are trading at multiples above where they have been for the last couple years.

Traders talk outside the New York Stock Exchange in New York City, New York, U.S., November 9, 2020.the S&P 500

up 9% in six trading sessions to an all-time intraday high , many are looking at parts of the market as overbought. Others agree, but say it doesn't matter in this strange mix of election and vaccine news. Who's right?On the bullish side, the technical guys are all enthusiastic.

However, the extent of the rally in cyclical/value sectors is being hotly debated. Banks are up 15%, energy is up 15%, and industrials are up 12% in the last six trading sessions. Many are now trading at valuations that have not been seen in years. Part of the problem — and the source of the disagreement — is that "value/cyclical" is a diverse group. Tobias Levkovich from Citigroup notes that there are three "buckets" of value stocks: Financials, industrials, and the "Covid-impaired groups" like travel and leisure., for example, which was $60 before the virus hit, was recently trading at $30, and closed Monday at $36.

But other value sectors are seeing valuations — and rallies — that do matter. Bank stocks have also begun moving on higher bond yields. Some bank stocks are trading at multiples above where they have been for the last couple years:But the biggest movers have been industrials, which even prior to the vaccine news had been moving as industrial proxies like ISM Manufacturing had been improving.

 

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Nearing?

SPX 4K by year end!

Da.

How could it not be

The Stock market is just a money machine manipulated by WallStreet wolves...they 🐺never sleep to be Bloodthirsty... take more care❗️

People are going to get wet feet in this rotation. Look at AAL. Stock jumps and they sell more shares the first day! 😂 What does anyone think Macy’s will do if their stock stays up very long at all?

no it goes up forever lol

Yes and overbought can stay overbought.

US stock futures down ~0.3% this morning.

But markets only go up, who said that now? Maybe it was Jerome...

CNBC Stop manipulate the market , your credibility big 0

good

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