Wall Street Strategies
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Afternoon Note

Cash To Buy

By Charles Payne, CEO & Principal Analyst
9/17/2020 1:46 PM

The market opened lower as confusion and selling spilled over from yesterday.  There was a valiant effort to rebound that actually took the Dow Jones Industrial Average into the plus column, erasing a 384 point decline at the worst point.  

But the rally attempt couldn’t seduce any cash off the sidelines. Hence, the subsequent move back to the downside.   

For the S&P 500, two sectors have held up well all session long,  but Industrials and Materials only have 7.9% and 2.5%,respectively, weightings in the index. 

S&P 500 Index

 

-1.44%

Communication Services XLC

 

-2.68%

Consumer Discretionary XLY

 

-1.85%

Consumer Staples XLP

 

-0.99%

Energy XLE

 

-0.56%

Financials XLF

 

-1.22%

Health Care XLV

 

-0.75%

Industrials XLI

+0.04%

 

Materials XLB

+0.14%

 

Real Estate XLRE

 

-2.26%

Technology XLK

 

-1.89%

Utilities XLU

 

-1.00%

The key at the moment will be to hold those earlier lows, especially for the S&P 500, which bounced perfectly off its 50-day moving average.  

I think some of this selling is the market trying to pressure Congress to act. I worry how loud this message has to get before lawmakers do something besides point fingers.

We are not forcing the issue here and are just looking for opportunities.  Note: we closed a couple of positions and took profits mostly as risk-reward began to shift.  Those decisions were company and industry-specific, not the market. 


 

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