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Morning Commentary

Walk It Off

By Charles Payne, CEO & Principal Analyst
11/27/2020 10:00 AM

I hope everyone had a great Thanksgiving considering the circumstances.  Living through this period will come to be seen as a blessing. It has renewed the focus on family and life in a way that was fading quickly in this high-tech world. 

Now its about moving out of the city and doing everything yourself.  I love it; although, I hate how it came about. 

As for the stock market, it continues to flash the signal that things are going to get much better, sooner rather than later.  There is no doubt the stock market can become too exuberant from time to time, but I do not see that from a macro level.  There is microburst of excitement that are red flags, but it should not matter to the broader market.

The super-hot money is bouncing around this morning.  Big declines in bitcoin and electric vehicle stocks and back into SPACs with operating businesses.  As for the boarder market, the S&P 500 saw investors camp out in old havens (Utilities and Real Estate) and new havens (Technology and Communication Services) on Wednesday.

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




While the mainstream media, and even most in the financial media when bonkers over the Dow Jones Industrial Average hitting 30,000 few if any mentioned the new all-time high achieved by the NASDAQ Composite. 

From a technical point of view, the index is at a double top, which is normally a short-term bearish chart formation.  Conversely, breaking through a double top is hugely bullish. 

The NASDAQ is indicating to have the strongest open among the indices this morning.

NASDAQ Composite

Industry Watch

All eyes are on  retailers this morning on what was traditionally the craziest day in the holiday shopping season.  This year, retailers have gotten very creative with many making the entire month of November a series of “Black Fridays.”

That being said, those names performing best have perfected omnichannel+.

We have moved Big Lots (BIG) and The Container Store (TCS) back to the new buy list.

Portfolio Approach

We closed an Industrial this morning for a slight profit to reallocate cash and added a new Technology position in our Hotline Model Portfolio.

Today’s Session

The stock market closes early today.  I hope you get outside, even if it’s for some fresh air on your balcony or backyard.  You have to move your body and keep the blood circulating.  I will be taking my own advice.

There will be no afternoon note.  Have a great weekend.  Be well and stay safe. 

Thanks for your Nov. 27 "Morning Commentary". I found it to be reassuring to me, a novice!

Gary Schwenk on 11/27/2020 11:31:21 AM
Thanks for all your hard work Charles although maybe it's not work for you it's what you love to do
Thanks all the best Robert

Robert on 11/27/2020 1:14:20 PM
It is easy to be upbeat in an up market (or even a sideways market) and even easier to be down in a down or confused (read covid and elections) market but Charle's wisdom has shown us that the light at the end of the tunnel is not a train coming in our direction but a light to show us the way. His confidence gives us certainty and sometimes even joy,Thanks

Michael Shields on 11/27/2020 2:06:29 PM
Always great Charles. Stay healthy and pray for a couple of states to flip soon!

Lorin K on 11/28/2020 1:19:59 PM

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