Short Covering Rally Or Is The Bull Market Back?

Lance Roberts34.1K FollowersFollow5ShareSavePlay(27min)Comment(1)SummaryThe market rose 1% to its highest close since late February. Driving that rally were reports that Iran had reached out to the Trump administration despite a U.S. naval blockade of the Strait of Hormuz.The S&P 500 closed Friday at a new all-time high of 7,125. That is a 13.1% rally from the March low in under three weeks.If there is a single dataset that most clearly distinguishes a short-covering rally from a genuine bull-market resumption, it’s sector rotation.The macro backdrop hasn’t been cleared of all risk, as oil remains above $90 per barrel, inflation is sticky, and the Fed has no near-term rate cuts in the pipeline.With the market now rebalanced, we should see a broader advance next week. Markets are getting overbought, so rebalance risk as needed. sitox/E+ via Getty Images Market Brief – Stocks Surge On Opening Of Strait The market didn’t just recover this week. It made new history. Monday opened with the S&P 500 erasing all losses since the Iran war began. TheThis article was written byLance Roberts34.1K FollowersFollowAfter having been in the investing world for more than 25 years from private banking and investment management to private and venture capital; I have pretty much "been there and done that" at one point or another. I am currently a partner at RIA Advisors in Houston, Texas. The majority of my time is spent analyzing, researching and writing commentary about investing, investor psychology and macro-views of the markets and the economy. My thoughts are not generally mainstream and are often contrarian in nature but I try an use a common sense approach, clear explanations and my “real world” experience in the process. I am a managing partner of RIA Pro, a weekly subscriber based-newsletter that is distributed to individual and professional investors nationwide. The newsletter covers economic, political and market topics as they relate to your money and life. I also write a daily blog which is read by thousands nationwide from individuals to professionals at www.realinvestmentadvice.com.