Yesterday, there was a lot of sound and fury, excitement and concern, and more gyrations as money kept bouncing from one sector to another. I’m not sure where all those billions pouring into the market are going. It feels as though the same cash just keeps tilting from one end of the market to another.
The market was split between aggressive buyers seeking out mega growth names again, while everyone else played it safe with Utilities and Real Estate names.
S&P 500 Index | +0.33% | |
Communication Services XLC | +0.13% | |
Consumer Discretionary XLY | +1.06% | |
Consumer Staples XLP | -0.53% | |
Energy XLE | +0.06% | |
Financials XLF | -0.93% | |
Health Care XLV | +0.42% | |
Industrials XLI | -0.49% | |
Materials XLB | -0.24% | |
Real Estate XLRE | +0.59% | |
Technology XLK | +0.94% | |
Utilities XLU | +1.19% |
Market breadth tells the story of most names drifting lower, waiting for a big spark.
Market Breadth | NYSE | NASDAQ |
Advancing | 1,608 | 1,983 |
Declining | 1,715 | 2,184 |
52 Week High | 237 | 142 |
52 Week Low | 16 | 76 |
Up Volume | 1.67B | 2.36B |
Down Volume | 1.74B | 1.61B |
NASDAQ-100
They’re back! The biggest mega growth names populate the NASDAQ- 100 (NDX), which closed at a new high.
NASDAQ 100 | Weight | Change |
AAPL | 11.16 | +2.51% |
MSFT | 9.78 | +0.97% |
AMZN | 8.62 | +0.55% |
TSLA | 4.27 | +8.48% |
FB | 3.79 | -0.86% |
GOOG | 3.74 | +0.56% |
GOOGL | 3.42 | +0.51% |
PYPL | 2.42 | +2.35% |
INTC | 2.04 | -0.22% |
NFLX | 1.88 | +0.16% |
CMCSA | 1.87 | +1.26% |
ADBE | 1.86 | +1.69% |
CSCO | 1.67 | +0.30% |
AVGO | 1.52 | +0.27% |
It is the second time the NDX climbed off the canvas after a three-week pullback. Back in September, the index slipped 12.9%, then began a rebound. More recently, it stumbled 10.9% after closing at 13,807 on February 12, 2021.
NASDAQ 100
Earnings Season
According to FactSet, this quarter has seen the most rapid increases in earnings estimates ever ahead of earnings season. It means companies are going to have to beat and guide well above the consensus.
To see the chart, click here.
Portfolio Approach
We added to Consumer Discretionary yesterday in our Hotline Model Portfolio. This morning, we took profits in Industrials and added to Consumer Discretionary. If you are not a current subscriber to our premium Hotline service, email Info@wstreet.com to get started today.
Today’s Session
Today, it’s all about that Coinbase's (COIN) Initial Public Offering (IPO), which fetched a reference price of $250.00 last night but has traded as high as $343.00 in the private market. The word has lost a fair amount of luster since its heyday back in the late 1800s.
Well, as of today, COIN is back.
noun: coin; plural noun: coins
- a flat, typically round piece of metal with an official stamp, used as money.
"she opened her purse and took out a coin."
verb: coin; 3rd person present: coins; past tense: coined; past participle: coined; gerund or present participle: coining
- make (coins) by stamping metal.
"guineas and half-guineas were coined."
What’s Up Market?
After a stronger than expected inflation read bond yields edged lower. Despite weak internals, including new highs to lows, major indices ,including the NASDAQ 100, begin the session at all-time high points. The VIX has come down tremendously, but volume has dried up as well.
Some would ask what word best describes the message of the maket and what does it mean for near term direction?
- Calm
- Complacency
- Confusion
I think its D) all of the above.
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