Johnson: This market is rotating but resilient

Group 1: Market Sentiment and Political Landscape - The recent elections in New York and New Jersey indicate a shift in sentiment, potentially affecting market dynamics and midterm elections [1][5] - The current political climate reflects a divided nation, with challenges ahead for whoever is in charge of running cities like New York [3][4] - Despite some shifts toward the Democratic party, significant work remains to be done, and the overall sentiment remains mixed [5] Group 2: Market Valuations and Trends - There is a consensus that market valuations are high, contributing to recent market sell-offs, with specific reference to Palantir as an example of high valuation despite strong earnings [6][10] - The market structure has changed, with more ETFs than individual stocks, leading to a focus on money flows rather than traditional valuation metrics [7][8] - A deterioration in market breadth is noted, with more stocks in downtrends than uptrends, suggesting a potential pullback or correction is due [9][10] Group 3: Currency Impact and Earnings Outlook - The dollar has strengthened recently, which could pose challenges for companies, especially if it affects earnings in Q4 and beyond [11][12] - Despite concerns about the dollar's strength, the overall outlook for the bull market and earnings remains positive, indicating a need for market consolidation rather than a downturn [12][13] Group 4: Sector Performance and Investment Opportunities - There is a notable rotation in the market, with healthcare stocks, such as Exact Sciences, showing positive momentum and potential for growth [13][16] - Exact Sciences is highlighted for its innovative approach to testing, which may appeal to consumers looking for cost-effective solutions [14][15]