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Afternoon Note

Market Struggle

By Charles Payne, CEO & Principal Analyst
3/4/2019 1:52 PM
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I’ve been waiting for this session for a while, and the signs were there last week when several rally attempts faded intraday.  The market has struggled of late, and it was clear the “China” news was baked into the rally, at least with respect to headlines of a deal. 

It’s early to know all the details, but the scuttlebutt alone suggests a new arrangement that we could have never been achieved through the World Trade Organization, including China fast-tracking new foreign investment laws to replace existing laws.

I often applaud tough sessions as the kind of test rallies must face, and today is no exception.  On that note, the rally has been so amazing there is a lot of downside before we get into must hold territory.

Dow Jones Industrial Average Key Support Points:

Another issue I’ve been talking about is leadership.  There was a lot of chatter about FAANG reclaiming its leadership role, especially with an upgrade on Amazon (AMZN) share price target at Ever-Core to $1,965 from $1,800.

Leadership?

All sectors are down today, but Healthcare is taking it on the chin the most.  Interestingly, homebuilders act great, even with the construction news, which normally doesn’t influence the board market but does impact homebuilders.

S&P 500 Index

-1.15%

Communication Services (XLC)

-1.08%

Consumer Discretionary (XLY)

-0.86%

Consumer Staples (XLP)

-0.87%

Energy (XLE)

-1.08%

Financials (XLF)

-1.07%

Health Care (XLV)

-1.85%

Industrials (XLI)

-1.02%

Materials (XLB)

-0.86%

Real Estate (XLRE)

-0.61%

Technology (XLK)

-1.39%

Utilities (XLU)

-0.67%

 

We took profits on a few names but mostly to have cash to buy a further dip.  If you are not already a subscriber, click here to get started today. 


 

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