Yesterday, September 1st was a good day in the stock market. The Dow closed up 254 points and the S&P 500 closed up 31 points.
Yesterday’s rally was different in one meaningful way as compared to the rallies of the past few months. While ignoring a slightly negative ADP report, the market chose to focus on the first positive, significant economic data that has been released in some time.
1) U.S. manufacturing data was better than expected, it was actually strong 2) China manufacturing data was better than expected 3) India and Australia reported strong GDP numbers.
These numbers, coupled with an idea we have been discussing on this blog, that the market will anticipate regime change in November, continue to point to the opportunity for a better than expected market in September, and maybe through November.
