Drawdown Possibility "Blip on the Radar," HUM & CCJ & "Under the Radar" Earnings

Market Reaction - Stocks are experiencing a pullback, influenced by comments from CEOs David Solomon and Ted Pick regarding a potential 10% to 20% correction over the next one to two years [1][2] - A 10% to 15% correction in a bull market is considered normal and could be a healthy sign for the market, allowing for reassessment of valuations [2][3] Market Conditions - Recent trading sessions have shown a spike in the repo market, indicating that some financial institutions may need capital, leading to increased high-yield credit spreads [4] - Despite the pullback, the market is still making higher highs and higher lows, maintaining the 20-day moving average for the S&P 500 [5] Volatility and Seasonal Trends - The VIX index is currently at 18, with expectations of a correction being discussed for some time [7] - November is traditionally a good month for stocks, raising questions about the duration of the current market conditions [7] Government Shutdown Impact - The ongoing government shutdown is in its 35th day, with a lack of economic data potentially reducing market volatility [9][10] - As the holiday season approaches, the impact of the shutdown may prompt Congress to negotiate a deal, affecting market sentiment [12] Federal Reserve Outlook - The labor market is a primary focus for Federal Reserve members, with indications that hiring is slowing, which may influence future monetary policy [13][15] - Market expectations suggest that a rate cut in December remains a possibility due to current economic trajectories [14] Company Focus: Humana - Humana is highlighted as a company to watch, particularly due to its exposure to Medicare and potential market share gains from United Health [18][20] - The stock is showing a bullish technical pattern, and a strong earnings report could positively impact the broader health insurance sector [19][20] Company Focus: Chemico (CCJ) - Chemico is noted for its involvement in uranium deals with the U.S. government, with potential for additional partnerships being a key point of interest [21][22] - The company's operations in Kazakhstan and Canada may benefit from reduced Russian uranium supplies, presenting a favorable outlook [22]