Stocks Rally On Tuesday

No Reason To Fear A Bear Market

Every sector was green except the financials which were down 0.07%. The consumer discretionary sector was helped by Netflix as it was up 1.87%. The big catalyst for stocks in the next few days will be the rest of FAANG's earnings. It's funny to see the VIX falling 7.91% to 15.25 just after there were articles claiming the VIX was the new safe haven. That was clearly ridiculous as this is likely a normal, albeit elongated correction. The European economy is weakening and the u.s. consumer is stagnant, but there's nothing that suggests a bear market is coming. The chart below shows the recent global PMI weakness in both services and manufacturing. If that was enough to cause a bear market, we would've had many in the past 10 years. It's even too early to say this is the 3rd global slowdown since 2010.