There are lots of ways to measure Main Street sentiment. One of the best ways is the Conference Board reading on consumer confidence.  The index was largely drifting this year until the last couple of months where it’s begun listing off.  Tuesday’s reading of 104.1 is the highest since August 2007.

The move was driven by a surge in present conditions, which lends credence to assumptions that wages are finally on the move. Moreover, there is a greater sense that jobs are becoming more available.

The lone red flag in the report was the sharp decline in response to a ‘good’ time to start a business: 27.4 from 30.3.  Still, the report was super impressive as it not only put the brakes on a serious slide, but it also allowed equities to decouple from oil, which slumped on the disappointment of another missed chance for the Organization of the Petroleum Exporting Countries (OPEC) to curb production.

Technology stocks rocked yesterday as lots of money came out of utilities. The Utilities Select Sector SPDR (XLU) is still up 17% this year, underscoring the anxiety that’s clouded 2016.

Despite the move in stocks yesterday, the yields on the ten-year slumped again as global investors continue to fret over concerns over European banks. 

In light of the presidential debate and outside pressure for the Fed to hike rates, there’s no way it’s going to happen with banking anxieties and the recent spate of sub-par economic data.  Sure, there is something to the notion that the Fed is political, but more than anything, Yellen & Co have boxed themselves into a corner.

Today’s Session

It’s the parade of the Federal Reserve talking heads. The chairman Janet Yellen will testify before the House Financial Services Committee about regulations, and other issues in the news, including executive compensation at banks and maybe even monetary policy.

Executive compensation in the financial industry hangs over today’s testimony after Wells Fargo CEO John Stumpf agreed to give up $41 million in compensation in the aftermath of its big consumer banking scandal. 

Today, the biggest loser will be Tempur Sealy (TPX) with shares indicating to open down 22%. We alerted subscribers to take a 23% profit last month at $77.00.

The key to this market is not to sit it out, but to manage a portfolio taking profits and losses, and adjusting for risk with a specific strategy of cash and hedges.

This is a great time to contact your account representative, or email info@wstreet.com