Stocks Have Been In A Quiet Correction For Months
"The market's behaved like a football team that keeps punting on fourth-down short-yardage situations, confident that its defense can hold off the other team until the offense gets in gear. So far, the bulls have given up plenty of yards but not all that many points, thanks to strength in utilities, consumer staples, and mega-cap tech and other growth stocks."
In other words, time well spent...
Cramer considers seeing [Consumer staples] stocks like Altria, PepsiCo or General Mills spark a powerful rally one of the most horrifying things for the stock market. More often than not, it can cause an immense amount of damage, unless there are vast sums of money coming in from the sidelines.
Taking note of sector leadership can give investors a strong read on whether the rally is sustainable or on the brink of collapse.
Back to the first article...
...by last week, nearly half of all stocks in the broad S&P 1500 were down at least 10 percent from their 52-week high, the popular bank sector remains down that much and economically attuned groups such as transportation and steel have lagged badly.
broader measures of downside hedging with options "are nowhere near the oversold levels that have coincided with important S&P 500 lows."
Index Put/Call had its most complacent reading since 2008.
Worth watching is the corporate-credit market: It remains firm, but risk spreads have modestly widened in recent weeks, slightly weakening one of the stock market's key sources of strength in the past year.
Corporate credit with Money Flow:
"More panic, please..."
"Some traders now want to see signs of greater panic to make an ideal buying opportunity"