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Morning Commentary

LET US KNOW WHEN SUMMER IS REALLY OVER

By Charles Payne, CEO & Principal Analyst
9/8/2021 9:30 AM

Yesterday was a slow lumbering session that never had a chance, as seesaw investors focused on mega-cap growth, led by Apple’s (AAPL) new iPhone hype, Amazon’s (AMZN) new TV hype, and a Tesla (TSLA) short squeeze.

But this was one of those rare sessions where all three growth sectors (Financials, Communication Services, and Technology) were higher, and yet, the S&P 500 finished lower.

Market breadth was negative, but there were more new highs than lows. The real problem was total volume.

        

Market Breadth

NYSE

NASDAQ

Advancing

1,023

1,663

Declining

2,305

2,762

52 Week High

128

181

52 Week Low

34

50

Up Volume

1.67B

1.96B

Down Volume

2.09B

1.97B

Summer Breeze

Summer breeze makes me feel fine

Blowin' through the jasmine in my mind

Summer breeze makes me feel fine

Blowin' through the jasmine in my mind

-Seals & Crofts

While summer is usually over for most folks after Labor Day, it’s clear investors were still somewhere else, soaking up the rays as the jasmine frolicked in their minds. As a result, it was the lowest volume session of the year for the S&P 500 and the fifth lowest for the NASDAQ Composite.

Interestingly, while the market was calm on the outside, the CBOE Volatility (VIX) Index popped 10.7%. It’s low enough not to be consequential at the moment, but it’s on our radar.

Bond Market & Stagflation

Gold, silver, and cryptocurrencies all took a dip yesterday, as attention shifted to stagflation concerns versus inflation concerns.

I’m not convinced about stagflation yet, but there is something odd about those recoveries, which might have been permanently skewed by all the money pouring into the economy- and possibly more to come.

Portfolio Approach

There are no weighting changes this morning to our Hotline Model Portfolio.

Today’s Session

Futures have turned lower as the global growth outlook is coming under increasing pressure. The dollar hit a one-week high, and the 10-year yields dipped to 1.355%, as investors reduced exposure to riskier assets. Oil is trading up, with WTI at $69.42 per barrel.

The August JOLTS (Job Opening and Turnover) report will be out at 10am ET. 

 

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