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Morning Commentary

Getting Back Into Mega Cap Leaders

By Charles Payne, CEO & Principal Analyst
7/12/2021 10:06 AM

Last Friday was one of the most magnificent sessions we’ve seen in a long time.  Tons of green on the screen with greater participation and much better market breadth.   And this happened after a tough session that had many spying the exits.

Market Breadth

NYSE

NASDAQ

Advancing

2,598

3,342

Declining

724

1,008

52 Week High

152

99

52 Week Low

10

33

Up Volume

3.06B

2.92B

Down Volume

466.30M

816.35M

Seesawing Market

There are still lots of unanswered questions and anxieties when it comes to the market.

Earnings Season

First quarter earnings were amazing, but stocks mostly got shot down. There are signs this time winners will be rewarded as Levi Struss on Friday – although the stock faded into the close.  It’s early, but 18 S&P 500 companies have reported, and if this is a tell, it’s going to be the best earnings season ever.

2Q Earnings Scoreboard

Revenue

Earnings

Beat

89%

94%

Blended Results

18.5%

65.8%

Inflation

We get another read on inflation tomorrow and this could have a major impact on the market.  I would not make changes based on the inflation guessing game without serious trends and a read from the bond market.

Today’s Session

It’s all about moving into big mega growth stocks and out of everything else, including more speculative investments.

Portfolio Approach

We took profits in Consumer Discretionary this morning, and our adding a new position in Industrials in our Hotline Model Portfolio.


Comments
Love your work and love your show. You were asking guests today why investors are so prone to snap decisions. Because the media trains and programs them to be that way. We don’t always have to jump when the market moves one way or the other. Take a look @ the big picture, look longer term and ignore the media “doom and gloomers”.

Dick Denecker on 7/12/2021 3:37:05 PM
 

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