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 42nd 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!
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 |
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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.
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