The great growth rebound continued, lifting the NASDAQ Composite higher - and this time, dragging the S&P 500 across the plus line for the first time this week.
The day after there were a lot of curious developments at the Fed, the market is determined they will stay the course. At least that’s the narrative from the action across several asset classes.
- S&P 500: +1.06%
- NASDAQ: +1.77%
- Russell 2000: +0.64%
- Dow Jones Ind: +0.55%
- West Texas Intermediate (WTI): -2.23%
- Gold: -0.24%
Interestingly, Energy could have been a lot lower, considering the dip in crude oil. However, investors still want to be ‘long’ Energy names, which mitigated larger earlier losses. There was still solid action in traditional safe-haven sectors, which reminds us that getting out of the forest of doubt isn’t going to happen overnight.
S&P 500 Index | +1.06% | |
Communication Services XLC | +1.71% | |
Consumer Discretionary XLY | +1.03% | |
Consumer Staples XLP | +0.92% | |
Energy XLE | -0.15% | |
Financials XLF | +0.05% | |
Health Care XLV | +1.05% | |
Industrials XLI | +0.22% | |
Materials XLB | +0.06% | |
Real Estate XLRE | +1.24% | |
Technology XLK | +1.91% | |
Utilities XLU | +0.87% |
Market Breadth
There were decidedly more advancers than decliners yesterday, particularly on the NASDAQ. But volume was extremely light, in fact, the lowest since Christmas Eve.
I keep thinking that’s a good thing, at least on down days. But without a doubt, it’s a sign most investors haven’t made up their minds. And many are resisting selling on emotions or buying too soon. I think computers and algos have been the axe in the market on down days. Buyers did get aggressive and moved back to those unprofitable but superfast growing technology stocks.
Market Breadth | NYSE | NASDAQ |
Advancing | 2,210 | 3,012 |
Declining | 1,090 | 1,232 |
52 Week High | 111 | 82 |
52 Week Low | 21 | 41 |
Up Volume | 2.33B | 2.95B |
Down Volume | 1.59B | 922.30M |
Inflation Scare? Anyone Going to Tell Bond Market?
Interestingly, we saw a swift spike in the ten-year bond yield. A couple of months ago, that swift spike propelled the inflation scare from a few nerdy economists crunching numbers in small cubicles. And perma-bears that have a never-ending checklist of reasons why the end of the world is right around the corner.
It was a heck of a way to usher in spring, but after those two weeks in March, yields have been largely calm.
I’m loving the action, although I am proceeding with a fair amount of caution. All these stocks are going down on amazing earnings, and even better guidance, and they are what I continue to think will be a gold mine.
Hang tough. It is a weird time after a big turn higher, so anxiety is higher than usual.
Portfolio Approach
We added to Materials yesterday in the Hotline model portfolio.
Today’s Session
We are waiting on data on the latest PMI’s for the US at 9:45am and existing home sales at 10 am, and we want to see if early strength holds. It would be impressive ahead of weekend in a tenuous atmosphere.
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