Morning Commentary
The world's a nicer place in my beautiful balloon
It wears a nicer face in my beautiful balloon
We can sing a song and sail along the silver sky
For we can fly, we can fly
Up, up and away
My beautiful, my beautiful balloon
-The Fifth Dimension
Once again, transportation stocks were the key for the market. They represent the growth of the economy, greater demand for goods, and a return to travel as the nation and world reopen. The Dow Jones Transportation Index (DJT) looks like a rocket ship launch.
It is the kind of move that brings together hot momentum buyers and old-school Dow Theory investors. Historically, when transportation leads, it corroborates the perfect proxy for future economic growth.
DJT
Market Breadth
The internals improved nicely. Also, there were still a lot of new lows on the NASDAQ Composite, and the overall volume was very light. I cannot remember the last time there was only 405 million down volume for the NASDAQ.
Market Breadth |
NYSE |
NASDAQ |
Advancing |
2,613 |
3,303 |
Declining |
712 |
905 |
52 Week High |
228 |
101 |
52 Week Low |
41 |
89 |
Up Volume |
3.39B |
3.54B |
Down Volume |
459.94M |
405.45M |
Buying the Dip
It was all about rebounds and buying the dip, as the reopening trade picked up steam, coinciding with a downturn in Covid-19 hospitalizations. Investors are using the recent decline in Goldman Sach’s (GS) reopening model to buy the corresponding dip in the stock market.
Sector Watch
Ten out of eleven S&P 500 sectors finished higher, none more impressive than Communication Services that were slammed most of the day and led lower by Netflix (NFLX).
S&P 500 Index |
+0.93% |
|
Communication Services XLC |
+0.17% |
|
Consumer Discretionary XLY |
+1.33% |
|
Consumer Staples XLP |
+0.50% |
|
Energy XLE |
+1.27% |
|
Financials XLF |
+1.39% |
|
Health Care XLV |
+1.18% |
|
Industrials XLI |
+1.37% |
|
Materials XLB |
+1.82% |
|
Real Estate XLRE |
+0.45% |
|
Technology XLK |
+1.01% |
|
Utilities XLU |
-0.84% |
The VanEck Vectors Semiconductor (SMH) Exchange-traded Fund (ETF) is in the perfect trading channel and putting on a technical clinic:
What’s always interesting with charts and formations that telegraph moves are often fundamental news that goes hand in hand. Semiconductor names popped on earnings from ASML Holding (ASML) and upgrades for key names in the industry.
Key names in the SMH include:
Keep an eye on the chips, which in many ways, are a modern-day transportation index. Instead of cargo, they facilitate the transportation of information, which is the biggest part of the modern economy.
The index breaks out with a close above 359, hopefully with better-than-average volume.
Portfolio Approach
We added to Materials yesterday in our Hotline Model Portfolio.
Today’s Session
It’s another quiet pre-opening period for the market. The big event in Washington will see President Biden pledge a 50 to 52% reduction in US greenhouse gas emission from 2005 levels to 2030.
There will be a big push on electric vehicles, but most of the pure plays in this space aren’t moving much ahead of the opening bell.
Good news on employment, as initial jobless claims dropped more than expected. But I am very worried about the total amount of folks getting benefits now. The read is two weeks behind, but at this point, it should not be increasing.
There are going to be some serious ramifications from these programs being abused.
Tweet |
3/28/2024 1:39 PM | Fruitful Quarter |
3/28/2024 9:50 AM | LISTEN TO THE MARKET |
3/27/2024 1:40 PM | Mostly Higher |
3/27/2024 9:32 AM | U-TURN? |
3/26/2024 1:08 PM | Everything Is Up |
3/26/2024 9:42 AM | TAPPED OUT (I HOPE YOU AT LEAST GOT A T-SHIRT) |
3/25/2024 1:33 PM | Not A Mutiny |
3/25/2024 9:35 AM | STAYING THE COURSE…BEYOND TECH |
3/22/2024 12:56 PM | Toll on Americans |
3/22/2024 9:38 AM | A TAD TIRED |
3/21/2024 1:55 PM | Building on Gains |
3/21/2024 9:30 AM | A COMFORTING FED |
3/20/2024 1:33 PM | Pivotal Moment |
3/20/2024 10:00 AM | HERE COMES THE FED |
3/19/2024 1:33 PM | Picking Up Steam |
3/19/2024 9:35 AM | RUMBLINGS IN THE BOND MARKET |
3/18/2024 1:48 PM | Mag 7 is Back |
3/18/2024 9:39 AM | THE PARTY IN SAN JOSE WILL BE LIT |
3/15/2024 1:38 PM | Realtors Settle |
3/15/2024 9:33 AM | AN UNEASY PAUSE |
3/14/2024 1:43 PM | Sticky Inflation |
3/14/2024 9:48 AM | GOING TO A GO-GO |
3/13/2024 2:16 PM | Taking a Breather |
3/13/2024 9:51 AM | ALL SO EPIC |
3/12/2024 1:42 PM | Marching Higher |
More commentary archives |
Home |
Products & Services |
Education |
In The Media |
Help |
About Us |
Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.
|