One of the large debates in recent days is what will the shape of the economic recovery be? V or W. I'm in the "W" camp and new information has come out in recent days:
1)Both GM and CHY say Sept auto sales are way down from Aug. One may recall the the Aug annual rate was 14.1 million-spuring auto production to replenish depleted inventories. If Sept comes in at 9.0-10.0 million-about the same before CFC-then inventory rebuilding will no longer be a GDP catalyst as inventories will get back into line by the middle of the 4th Q.
2)In the Philly FED index today, new orders for Sept were down vs Aug as was 6 month expectations and employment-further implying that once inventory rebuild cycle is complete mgt will ratchet down production to match end market sales
3)M2 money supply has been flat for 6+ months-no new juice for the economy

Implications for stocks, new macro-econ numbers must continue to improve to justify higher stock prices. Evidence is coming in that macro-numbers are turning flat to down.

As always, one man's opinion, sell the stocks that have had big % gains and looking stretched and only hold those that still have alot of downside protection from a valuation perspective. My favorite valuation parameter is how much the stock is relative to what the balance sheet is worth. If the stock is cheap relative to the balance sheet, then that remains a strong hold.