Stocks have been meandering all session, but once again continue to exhibit resolve. I think we are setting for the next big leg higher. The issue is leadership. What combination of sectors can get the market through the next level of resistance and attract even more cash off the sidelines?
I think Consumer Discretionary, Communication Services and Technology is the right mix.
Meanwhile, airlines are catching bid after positive comments from President Trump. This calls to mind that the market has seen alternating days of rallies led by industries with broken business models, and then days when the big pre and post coronavirus names are dominating.
I like that investors continue to rotate out of Utilities and Real Estate, perhaps building cash to look for ideas that focus on wealth appreciation not high dividend yield.
S&P 500 Index | +0.16% | |
Communication Services XLC | -0.42% | |
Consumer Discretionary XLY | +0.59% | |
Consumer Staples XLP | +0.43% | |
Energy XLE | -1.27% | |
Financials XLF | -0.28% | |
Health Care XLV | +0.41% | |
Industrials XLI | -0.64% | |
Materials XLB | +0.10% | |
Real Estate XLRE | -0.61% | |
Technology XLK | +0.88% | |
Utilities XLU | -0.78% |
Consumer sentiment was better than expected today because folks see things much better in six months, and they are poised to make it happen. The April read was April to 71.8 beating the estimate of 67. The question is whether government will make allow it to happen?
Have a good weekend. Be safe, be well, and stay positive.