Last week was a tough. But on Friday, the market saw a surge in buying into the last thirty minutes of trading.  When the dust settled, Energy and Financials were even higher, as some investors moved from the best performers to the absolute worst performers of 2020.

The flush out in Technology was bound to happen after weeks of big hedge funds trying to talk the sector down.  Valuations are high, but fundamentals are amazing for most, and all of the bigger names will find their footing and rebound.

Market breadth was a little better, especially on the New York Stock Exchange.

The most important thing about Friday was the fact key support levels held, including 3223 area on the S&P 500.

Hotline Model Portfolio Approach

We actually put money to work in the Hotline model portfolio Friday afternoon and are adding to Consumer Discretionary this morning.  The selling was overdone.

Today’s Session

There will be a nice bounce at the start of trading, and then the fun begins.  I suspect the levels of anxiety are such that we could see more gyrations. Investors, as opposed to traders, have to see great values evolving in the selling, and at some point, should be buying into the carnage.