Cracks Forming in Stock Melt Up, Newedge's Dawson Says

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00:00Cameron Dawson of New Edge Wealth writing, we see potential for the mount up to barrel on

00:04into year end, but see cracks under the surface that could make the market more fragile to start

00:0926. Cameron joins us now for more. Good morning, Cameron. Good morning. Are you longer in estate

00:12in Florida? That's a joke, don't answer. Let's get to the cracks under the surface. What are

00:16the cracks under the surface? The first one is no. And the second one is we've certainly seen

00:21a deterioration in breadth over the course of the last month or so. You've seen this market

00:26get ever more narrow. You have 60% of the names within the S&P 500 not trading above their

00:3250-day moving average. And that was brewing even as we were hitting all-time highs last

00:36week. We also saw a big surge in very speculative parts of the market over the course of the

00:40last two months that was simply unsustainable. Even the socks was up 30% over the course of

00:46September and October. So we should not be surprised that we are seeing volatility. That

00:51is the nature of equity markets. We're only 2% off of all-time highs. You're still very

00:56much in an uptrend. But you have to appreciate the fact that we've had this melt-up and it

01:00just increases the probability that you have some chop and churn as you adjust these massive

01:05moves.