S&P Sets A New Record

Charles Payne

Aug 04, 2021 1:48 PM Aug 04, 2021

Opinion

The opinions expressed by columnists are their own and do not necessarily represent the views of Townhall.com.

Yesterday was a very impressive session that hit the brakes on a lackluster start, creating pressure on the fence-sitter, which were forced to chase into the close. Ten out of eleven sectors were higher by the closing bell, and the S&P 500 Heat Map was a sea of green.

Symbol	Select Sector SPDR Fund	Change	% Change	Volume
XLC	Communication Services	-0.41	-0.49	4.24 M
XLY	Consumer Discretionary	+1.18	+0.65	4.0 M
XLP	Consumer Staples	+0.29	+0.40	7.78 M
XLE	Energy	+0.82	+1.66	29.51 M
XLF	Financials	+0.36	+0.99	37.51 M
XLV	Health Care	+1.72	+1.30	6.98 M
XLI	Industrials	+1.28	+1.25	12.52 M
XLB	Materials	+0.72	+0.87	6.2 M
XLRE	Real Estate	+0.17	+0.37	6.36 M
XLK	Technology	+0.88	+0.58	4.92 M
XLU	Utilities	+0.31	+0.47	12.12 M

Another Record

The S&P 500 closed at a new record high point after bouncing off its 50-day moving average again. It is the 42^nd record achieved in 2021. Bears, grasping for straws, are pointing out that the bounces off the 50-day moving average have been shallow of late, indicating potential difficulty in attracting fresh buyers.

I’m not buying that!

Meanwhile, the ten-year bond year keeps falling. Bears are now blaming the short covering.

Portfolio Approach

There are no weighting changes to the Hotline Model Portfolio.

Today’s Session

It was a quiet morning, then ADP released its monthly jobs report, which landed with a thud. The 330,000 jobs would have been impressive at any other time, but with Wall Street consensus of 900,000 and whispers north of one million jobs being created last month, this report is worrisome.

Wall Street was looking for 690,000 private sector jobs.

Goods Producing

Service Producing

Natural Resources & Mining 3,000
Construction 1,000
Manufacturing 8,000

Trade, Transportation & Utilities 36,000
Information -1,000
Financial Activities 9,000
Professional & Business 54,000
Education & Health 64,000
Leisure & Hospitality 139,000
Other Services 16,000

Message of Bond Market

The ten-year yield is testing a very pivotal number on the chart; 1.136% was a big resistance point at the start of the year, and once it was cleared, it held as support. Now it’s being tested. I think this is a lot more than short-covering (the latest excuse for all the mavens that got it wrong). Ironically, this is good news for stock investors hoping the Fed never stops printing. Right now, it looks like they won’t.