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Afternoon Note

Waiting Game

By Charles Payne, CEO & Principal Analyst
4/11/2019 1:11 PM
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Another quiet session where the inability to gain traction has invited some selling.  The markets got softer after European trading finished, but there is no real catalyst per se. Buyers flocked to financials the day before they kick off earning season, and it is intriguing.  There is no doubt that investors are looking for big upside moves from the big banks, which have disappointed for more than a year.

The market climbs a wall of worry but getting over the top, always causes some trepidation.

I love the action in industrials led by Fastenal (FAST), a great old-school company run by conservative management.  The news there is helping to lift other names in the sector where there are some deep discounts.

The big IPO today PageDuty (PD) has opened like a rocket ship.  The third unicorn of 2019 shares were initial priced in $21 to $23 range, but IPO fetched $24.00. The first trade today $36.75 is a clear victory for unicorns crowding the starting gate.

S&P 500 Index

+0.12%

 

Communication Services (XLC)

+0.19%

 

Consumer Discretionary (XLY)

 

-0.05%

Consumer Staples (XLP)

+0.09%

 

Energy (XLE)

+0.53%

 

Financials (XLF)

+0.76%

 

Health Care (XLV)

 

-0.54%

Industrials (XLI)

+0.61%

 

Materials (XLB)

+0.26%

 

Real Estate (XLRE)

 

-0.07%

Technology (XLK)

 

-0.08%

Utilities (XLU)

+0.11%

 

Technical View

The 2019 chart exhibits the strong start from oversold conditions at the start of the year to a flattening, as the rally has dealt with some profit-taking amid the waiting game. 

There is a small downside gap at 25,929 that could be filled but for now selling hasn’t triggered any additional selling.

https://www.tradingview.com/x/49OgiWbK/


 

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