Retreating Yields Lift Stocks and Broaden Market Gains
Treasury yields reversed from two-decade highs, helping stocks recover morning losses as gains broaden beyond Tech, but higher oil prices remained a headwind.
September Trading Sees Fitting End With Higher Rates and 2 Tiers
Bonds had good reasons to rally and didn’t, which benefited the AI mega caps.
The Indices Are Breaking Down, But This Correction Isn’t Over Yet
Resist the temptation to bottom fish stocks that have no support.
There’s Not Much There There
* There is less that meets the eye in the U.S. stock market
* Market breadth has a foul odor, the average stock is falling, crude oil and interest rates are rising and complacency reigns…
The quote “there’s not much there there” comes from Gertrude Stein’s book Everybody’s Autobiography written about 90 years ago. The phrase conveys that a place, person or situation lacks substance or death and originated from Stein’s reflections about her childhood neighborhood in Oakland, California. It was Stein’s feeling that the area had changed dramatically with the familiar landmarks and very essence of her youth gone (leaving a sense of emptiness and loss). Stein believed that time and development erased the “there” of her childhood city.
At 5:30 AM S&P futures are -39 handles.
More interestingly is that Nasdaq futures are -310 handles — with, an infrequent occurrence that memory/semis AND hyperscalers are all falling down together.
A rejection by the president of an Iranian cease fire proposal has resulted in a +$3 rise in the price of crude oil.
For four months we have cautioned that the market IS NOT BROADENING OUT (despite a near-universal view on the part of the bullish cabal) and that market breadth is foul.
Importantly, several leading market sectors (e.g. financials/banks) are clearly rolling over — along with the Russell Index ($IWM) and the equal weighted S&P Index ($RSP):
As noted in my post in the Comment Section and in my Diary, I put back on my index shorts at around 8 PM Sunday night:
Sunday Night Trading
From last night:
Dougie Kass
8PM Sunday Night
Back shorting the Indices:
- SPY $769.83
- QQQ $744.46
Position: Short SPY (S), QQQ (S)
BY Doug Kass · Sep 28, 2026, 5:41 AM EDT
Position: Short SPY (S), QQQ (S)
Weekly Roundup: Waiting for the Market to Show Its Hand
During a volatile week, we updated the Portfolio’s shopping list, and locked in a sizable tech gain.
Four Charts You Should Pay Attention To
While I’m away on vacation for the next two weeks, here are four charts you should be watching.
Amid a Lack of Market Leadership, I’m Eyeing These 2 Stocks
I’m adding to this oil play and biopharma stock as market sees some strange and broad-but-shallow action Tuesday.
In Case You Missed It: Deteriorating Breadth
For those that celebrated the Jewish holiday I wanted to repost two columns from Monday.
The first column is on the deteriorating breadth, updated for yesterday’s performance:
Not Broadening
* As previously noted (repeatedly by myself and The Divine Ms M), the market is narrowing — with the Russell not crowing and the equal weighted S&P Index (RSP) rolling over
* Given the narrowing and the valuation model discussion in my upcoming opener, I am planning to expand my short book on the recent rally and strength in the indices
* It feels like deja vu all over again…
Here was Friday’s report card:
$SPY +0.30%
$QQQ +0.81%
$IWM -0.48%
$RSP -0.40%
Though S&P futures rose by 21 handles and Nasdaq futures increased by +238 handles on Friday, market breadth continues to have a foul odor as seen by these tweets delivered by Jason Goepfert:
Shades of the Dot-Com Era
And the correlation between tech stocks and the rest of the market is the lowest in 22 years:
It feels like deja vu all over again.
Position: Short SPY (S), QQQ (S)
BY Doug Kass · Sep 21, 2026, 7:05 AM EDT
Position: Short SPY (S/M), QQQ (S/M)
Magnificent Seven Hits All-Time High but it’s Not What it Seems
It was an upbeat day driven by poor positioning and too much negativity.
Not Broadening
* As previously noted (repeatedly by myself and The Divine Ms M), the market is narrowing — with the Russell not crowing and the equal weighted S&P Index (RSP) rolling over
* Given the narrowing and the valuation model discussion in my upcoming opener, I am planning to expand my short book on the recent rally and strength in the indices
* It feels like deja vu all over again…
Here was Friday’s report card:
$SPY +0.30%
$QQQ +0.81%
$IWM -0.48%
$RSP -0.40%
Though S&P futures rose by 21 handles and Nasdaq futures increased by +238 handles on Friday, market breadth continues to have a foul odor as seen by these tweets delivered by Jason Goepfert:
Shades of the Dot-Com Era
And the correlation between tech stocks and the rest of the market is the lowest in 22 years:
It feels like deja vu all over again.
Position: Short SPY (S), QQQ (S)