Stocks are divorced from fundamentals

The stock market tried and failed to move higher today. Before it inched up last week, it had moved sideways, like soldiers standing at attention, for nine trading days in a row. This is not the pattern seen before rocketing higher. A big move higher is performed in big upward steps. The valuation of the stock market is still in excess of 25 times earnings. Business inventories divided by business sales is 1.4; this is a level previously seen only during recessions.
My Automobile Sector zoomed higher since July 1 by 6.2%. But the fundamentals of the stocks within this sector have very weak sales
CYD -12 -2
OSK 8 -9
HMC 12 2
GNTX 12 14
DAN -4 -5
TTM 12 6
DLPH 9 -2
GT -7 -8
F 6 2

The only exception was Tesla (TSLA) that had 33% and 47%, colored green at, while all the rows above were colored red. This market reminds me of the road-runner cartoon where the road runner runs off a cliff and hangs in mid air for a while before plunging down.

Here’s the chart of the S&P 500:


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