It was an interesting week for the market that saw major indices finish at new highs but on the lowest volume of the year.

Lots of things are bugging the market. 

• Powell
• High Taxes
• Inflation
• Value

The market is grappling with its own success and the feeling it’s harder to find value.  These kinds of moments don’t last long, as new highs beget new highs, and the idea of waiting for the perfect entry point is tossed out the window.

Powell has done a good job pledging his case.  That said, I suspect the Fed will have to remove the punch bowl in 2023 and find a way to articulate that over the coming weeks and months.

Market Breadth

Market internals were lukewarm highlighted by light volume.

Portfolio Approach

We are adding to Consumer Discretionary this morning in our Hotline Model Portfolio.

Today’s Session

The market is trying to generate traction.  The emerging trend of strong finishing rallies will soon lead to strong starts, but for now, money wants to be wooed off the sidelines.