It’s been a classic tug of war with blue chip names higher, while Technology drags the NASDAQ lower and threatens all the other major indices.
It’s clear investors came into the session ready to rotate into cyclical names, but I have to admit the selling in growth (mostly Technology and Communication Services) is more brutal than I anticipated. I think the action is more symbolic for the economy than the stock market, as most of those tech names will rebound in due time (like maybe tomorrow LOL).
But we want bank stocks and restaurant stocks and building equipment stocks to move higher as a sign the general economy is building on those green shoots.
Outside of Technology, only two other sectors are down, and it looks like that initial wave of selling might be exhausted.
Tale of Two Indices | NYSE | NASDAQ |
10:00 | ||
Advancers | 2,109 | 1,702 |
Decliners | 634 | 1,205 |
Up Volume | 670 million | 344 million |
Down Volume | 178 million | 325 million |
12:00 | ||
Advancers | 1,930 | 1,653 |
Decliners | 953 | 1,486 |
Up Volume | 2.2 billion | 1.1 billion |
Down Volume | 828 million | 1.1 billion |
In these kinds of markets, breathe and then move. On that note, we put on a ton of cyclical and value ideas this month and last. You should be doing rather good, as if you owned 20 Koo Koo Roos.