Wall Street Strategies
Hello! Sign in or Register


Afternoon Note

Quiet Market Explosive Hot Sectors

By Charles Payne, CEO & Principal Analyst
1/7/2020 1:45 PM

It has been quiet for most of the market but explosive for hot sectors.

S&P 500 Index

 

-0.23%

Communication Services (XLC)

+0.30%

 

Consumer Discretionary (XLY)

 

-0.45%

Consumer Staples (XLP)

 

-0.62%

Energy (XLE)

 

1.25%

Financials (XLF)

 

-0.59%

Health Care (XLV)

 

-0.16%

Industrials (XLI)

 

0.33%

Materials (XLB)

+0.31%

 

Real Estate (XLRE)

 

-0.38%

Technology (XLK)

+0.37%

 

Utilities (XLU)

 

-0.23%

Like yesterday, Communications Services are leading the pack, led by Twitter (TWTR,) which laid an egg in its last earnings release and has seen a strong list of Wall Street downgrades over the past two months.  Facebook (FB) and Alphabet (GOOG) are also doing some heavy lifting.

Meanwhile, chip names continue to rocket higher getting the latest boost this morning from an upgrade on Micron (MU) from Cowen, which now sees the stock rallying to $70.00 a share instead of $50.00.Like yesterday, Communications Services are leading the pack, led by Twitter (TWTR,) which laid an egg in its last earnings release and has seen a strong list of Wall Street downgrades over the past two months.  Facebook (FB) and Alphabet (GOOG) are also doing some heavy lifting.

Semiconductors are on fire, but volume is declining (see chart).   Still, we are going to ride this for all its worth.

https://www.tradingview.com/x/HOQegh3F/

Unlike yesterday, an early reversal has lost steam.  There isn’t a great sense of fear, just general anxiety associated with every week that finishes with the jobs report.  The market is looking for a spark beyond momentum names, and it’s not getting it right now.

I don’t think the situation in Iran impacting the market at all at this point.


 

Add Your Comment


Submitted comments are subject to moderation before posting.


Home | Products & Services | Education | In The Media | Help | About Us |
Disclaimer | Privacy Policy | Terms of Use |
All Rights Reserved.