Make it fifty!  This is  the 50^th time this year that the S&P 500 closed at a record high. Only 1964 and 1995 had more highs at the same point in those calendar years. 

However, only six sectors were higher, as money rotated out of recent hot sectors, including Technology and Utilities, into those reopening darlings.

Better Breadth

Market breadth is a little better, but when you consider the huge NASDAQ Composite milestone of crossing 15,000, you would think there would be more than 57 net highs over lows.

Market Breadth	NYSE	NASDAQ
Advancing	2,240	2,871
Declining	1,084	1,585
52 Week High	114	137
52 Week Low	50	80
Up Volume	3.26B	2.86B
Down Volume	761.55M	920.41M

There have been three 1,000 point moves in the NASDAQ this year. If history is a guide, it might only be in this area for a short period, as it only crossed back down from this milestone a total of 20 times since 2009.

Source: Bespoke

Foreigners Love Our Debt

There was a heck of an auction for two-year bonds that saw a surge in foreign buying to the largest percentage since 2009.

Two-Year Auction $60.0 billion:

• Direct Bids                       $12,690,000,000    21.2%
• Indirect Bids                    $36,271,901,800     60.5%
• Primary Dealer                $10,950,597,000     18.3%

Yields seem to have found a bottom for now, but the question is when they will start to head higher.

Tidbits

I am ape, hear me roar!  I wrote yesterday that I was sniffing out a return of the short squeeze, and then the two powerhouse names that have slain more shorts than any had a magnificent session. GameStop (GME) +27.5% and AMC Entertainment Holdings (AMC) +20.35% - more to come.

Casino stocks continue to rock along with other reopening industries, but gaming names were more convincing.

There’s more theater on Capitol Hill. Those so-called moderate Democrats blinked before the closing curtain on a drama that was never dramatic.  As a result, the $3.5 trillion spending plan moves ahead.

International Markets

Global markets rocked yesterday, led by China, which saw a bounce as some investors are willing to make, even without clarity on whether President Xi is done making his war on corporate profits.

I still think the best way to “play” the global markets is to own shares in multinational corporations that do big business abroad.

Portfolio Approach

We added to Consumer Discretionary yesterday in our Hotline Model Portfolio. 

Today’s Session

There is some anxiety setting in with the Jackson Hole conference just 48 hours away.

4IR

Durable goods missed but capital spending remains higher – businesses are pushing hard to make up for the workers strike and remain competitive in the Fourth Industrial Revolution.

Comments

I subscripted to SiriusXM just to be able to listen to the show thanks for being informative and for truly caring Namaste Charles Demetric Nash on 8/25/2021 8:23:02 AM

Thank you very much Demetric. CP Charles Payne on 8/25/2021 8:36:19 AM

Re: Global Markets - I found out a few weeks ago that most emerging market mutual funds and ETFs have a considerable amount (~30%) invested in China. The recent drop in Chinese stocks made me look under the hood of these funds (which both my wife and I have in our IRA/Roths). Anyway, I thought wouldn't it be great if there were some emerging market funds/ETFs that were ex-China - turns out there are a few (iShares has one; Vanguard has none) and I moved by VWO to EMXC. Thought I'd share as others may be interested. Charles Lucente on 8/25/2021 8:28:18 AM

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