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Afternoon Note

From Panic Selling to Opportunistic Buying

By Charles Payne, CEO & Principal Analyst
1/10/2019 1:53 PM
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It’s been a relatively quiet session, but there is still meaningful action including:


Before the market opened, warnings from Macys (M) and American Airlines (AAL) drove equities lower. I was bracing for a multi-hundred-point drop in the Dow Jones Industrial Average. Stocks started the session under pressure but found footing early to rally higher.

Buyers Emerging

Yesterday, shares of Constellation Brands (STZ) were crushed, down 22 points or 8% for the session.  Downgrades and lower share price targets continue this morning, but Goldman thinks the selling is overdone and raised its rating to “buy” making Constellation one of the biggest winners today.

Seeking Value

Although safe haven sectors Real Estate and Utilities are best performing, there has been lots of buying in Material and Industrial names.

S&P 500 Index


Communication Services (XLC)


Consumer Discretionary (XLY)


Consumer Staples (XLP)


Energy (XLE)


Financials (XLF)


Health Care (XLV)


Industrials (XLI)


Materials (XLB)


Real Estate (XLRE)


Technology (XLK)


Utilities (XLU)



Since that Christmas Eve drubbing, the investing pendulum has swung from panic selling to opportunistic buying, and the bias has shifted to the upside. 

This is good stuff, indeed.

Infectious stuff, indeed.

Meanwhile, the market is hanging on every word of Jay Powell being interviewed by his old boss, David Rubenstein of Carlyle.  Right now, he hasn’t said anything to harm the market.

Key observations:



Trade Battle

Recent Weakness

Greatest Worry










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