How Much Momentum Is Left in the Equity Markets?

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Dec. 2 (Bloomberg) –- Raymond James Director of Institutional Equity Trading Daniel McMahon discusses his end of the year market outlook with Julie Hyman on Bloomberg Television's "Street Smart." (Source: Bloomberg)

In november of 2.8% for the s&p 500, we wanted to talk to randall james.

Dan, you are looking at the end of the year, a lot of people have had a good year because the s&p 500 -- or not so good a year.

Exactly.

You have seen people pulling back and taking profits?

Or do you see people continuing to ride the wave higher?

You are going to see a little bit of both.

There is still a ton of momentum in the equity markets, a constant phrase we hear on the desk these days is -- never another down day.

Action aside having more to do with retail sales over the weekend, you are hearing a lot of chatter about rising interest rates and how we can approach three percent again, people are still convinced that equities are the place to be, which makes sense.

You are not seeing a lot of activity, as mentioned.

Investors, many of them had great years.

You are hearing about returns north of 50% with some hedge funds less than that, a lot more the index is tied to mutual fund infrastructure.

I think of what we are seeing on the desk is people selling winners and taking cash off the table, re-posturing themselves for stocks with catalysts going into 2014. what you will start to see more of is selling there will be tough to find, given that it is highly correlated and the entire market has gone up.

The rotation you are talking about, some of the best performers and the not as strong performers, usually that does not happen or until january, right?

Are we seeing it earlier?

I think it is people posturing, if you will.

Auto people are not selling the rallies.

They are comfortable in their loan, they like them, they are comfortable to ride the wave.

How big of a concern i'll -- a concern are these retail sales?

It has not just been one week now.

Especially on a retail by retail basis.

Our people concerned about what it says over retail spending?

I think there is some concern about the strength of the consumer in this recovery.

It has been a very modest, slow- paced recovery, which is a good thing, people refer to it as sustainable, but the consumer has obviously always been a strength of any recovery and you are now starting to get some concerns -- how robust will be till spending be?

The saturday before christmas is always the biggest shopping day of the year.

All of this black friday thanksgiving day weekend to talk aside, it gave people a reason to sell stocks today.

Black friday was down 13%, year- over-year.

Anything that gives people a

This text has been automatically generated. It may not be 100% accurate.

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