Ken Tower Stock Quotations

Only 10 New York Stock Exchange stocks made new lows yesterday, so it's clear that there is a great deal of underlying market strength. Industrials remain the clear winner, as they reached another new high yesterday. Financials had a huge rally and also closed at a new high. Leadership will eventually shift back to tech, energy and basic materials, but we're not there yet.

The presumption is the bond market is smarter than the stock market. I'm not saying it's always true, but there's a reason that the bond market tends to lead the stock market.

The recent stock rally was fueled by the idea that the Fed is nearly done and I am concerned that such a hope could be in trouble. If the economy is growing faster than investors are expecting, that could be a problem.

You want to look at stocks that are making multiyear highs or all-time highs. Those companies have a lot of support out there in the investment community. People think these companies are doing well, but if you want to buy a stock that's up from $1 to $3, maybe they survive and maybe they don't, that's just a riskier approach.