Wall Street Strategies
Hello! Sign in or Register

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



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



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. 


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.