Morning Commentary
Wednesday was another solid session for cyclical names, particularly Materials (XLB) on movement with infrastructure. However, after a strong bond auction, the session got an extra boost, which says foreigner demand pushed yields lower.
Sector Watch
Keep an eye on Materials - to rally to form a double top -a breakout there would be monumental and spark a much higher move.
Industrials ,also sporting an intriguing chart, has come on strong. The sector has significantly underperformed the S&P over the past six months.
Internals Still Lousy
Market breadth was strong on the New York Stock Exchange (NYSE), reflecting a shift to value, quality, and cyclical names, while the NASDAQ Composite struggled in all measures.
Market Breadth |
NYSE |
NASDAQ |
Advancing |
2,205 |
2,319 |
Declining |
1,084 |
2,024 |
52 Week High |
180 |
144 |
52 Week Low |
34 |
117 |
Up Volume |
2.30B |
2.13B |
Down Volume |
1.18B |
1.75B |
FDA Booster Shot
The U.S. Food and Drug Administration (FDA) is ready to authorize a Covid-19 booster shot. Perhaps that’s why so-called stay-at-home or work-from-home names took it on the chin. And reopening stocks found buyers even with elevated Delta variant cases and increased hospitalizations.
Portfolio Approach
We took profits in Healthcare this morning in our Hotline Model Portfolio.
Today’s Session
Inflation Picture / Core PPI
For the fifth month in a row, PPI core has come in much hotter than Wall Street consensus – this time twice the consensus of +0.5% - matching the second highest number ever.
Producer prices continued marching higher – climbing 7.8% from 7.3% - hitting the higher level ever (data kept since Nov 2010).
Lots of noise in the PPI report we need to comb through…but the bias remains to the upside.
Comments |
Ready to listen to "Making Money" with Charles today! YEA Lorin K on 8/12/2021 10:30:47 AM |
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4/26/2024 1:46 PM | Full Steam |
4/26/2024 9:39 AM | BIG TECH STEPS UP |
4/25/2024 1:16 PM | Don't' Bury me, Yet! |
4/25/2024 9:27 AM | THERE CAN ONLY BE ONE |
4/24/2024 1:30 PM | Earnings Flood In |
4/24/2024 9:26 AM | BUYING THE DIP |
4/23/2024 1:25 PM | Bloom Off Rose |
4/23/2024 9:32 AM | WHAT HAPPENED TO THE BRAVADO? |
4/22/2024 1:22 PM | Pins and Needles |
4/22/2024 9:30 AM | LIVE BY THE SWORD … |
4/19/2024 1:20 PM | Fair Chunk of Rotation |
4/19/2024 9:35 AM | DON’T OVERREACT |
4/18/2024 1:37 PM | Didn’t Break Down |
4/18/2024 9:40 AM | MARKET OFF SCRIPT |
4/17/2024 1:59 PM | Facing Pressure |
4/17/2024 9:37 AM | POWELL STILL WANTS TO HELP |
4/16/2024 1:35 PM | Muted |
4/16/2024 9:42 AM | FEAR ARRIVES |
4/15/2024 1:17 PM | Making a Statement |
4/15/2024 9:45 AM | Equal Opportunity Drubbing |
4/12/2024 1:37 PM | Pressure Overall |
4/12/2024 9:42 AM | WHO YA GONNA CALL? |
4/11/2024 1:38 PM | No Urgency |
4/11/2024 9:27 AM | Tough Sledding |
4/10/2024 1:22 PM | Hang In There |
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