Coming into the week, there is a lot of hope for stocks to rally higher, and not just major indices, which from time to time tend to mask serious problems.

 

On Friday three sectors out of eleven were higher, but that was enough for the S&P 500.

S&P 500 Index		-0.14%
Communication Services XLC		-0.34%
Consumer Discretionary XLY	+0.43%
Consumer Staples XLP		-0.36%
Energy XLE		-3.90%
Financials XLF		-1.09%
Health Care XLV		-0.61%
Industrials XLI		-0.50%
Materials XLB		-0.18%
Real Estate XLRE		-0.54%
Technology XLK	+0.73%
Utilities XLU	+0.57%

Last week, the market was up, but it was ugly beneath the surface, as an overwhelming number of stocks were lower, and many were crushed.  Investors rushed back into growth names lifting the S&P 500 and NASDAQ, which saw the most new 52-week lows since back in March 2020. 

November 19, 2021

Week November 19, 2021

Portfolio Approach

There is no change to our sector weighting in the Hotline Model Portfolio this morning.

Today’s Session

President Biden has re-nominated Jay Powell to stay at the head of the Federal Reserve.  The street sensed as much earlier this morning: Betting markets are swung back to Powell.

This is great news for America – Brainerd was too extreme and her war on banks would have harmed Main Street more than Wall Street.

Small Caps Big Test

I keep watching the Russell 2000 closely as a proxy for the US economy. I’m worried the recent breakout could fail.  Conversely, breakouts after months of moving sideways have to be tested.

Covid19 Cases have to be watched this week as well

Covid19 deaths

 

Comments

Same percentage! Bob on 11/22/2021 9:38:38 AM

The giant companies bulldoze zoning and abuse the residential property owners using the employment excuse and then don't hire locally. They should be forced to buy only existing commercial space because they are the reason the politicians are making a fortune. Karen on 11/22/2021 9:53:15 AM

A Corporation's (Business in any form) fair share is to operate fairly in all aspects and take advantage of tax "loopholes" provided by Congress, to achieve benefits for the entire country. WILLIAM J SELLITTI on 11/22/2021 10:05:32 AM

Yep. CP Charles Payne on 11/22/2021 10:36:29 AM

what "fair share" means, it's socialism. It only works in the family unit - i.e., parents with their children. the farther outside the family unit, the more disastrous it gets - i.e., first the family, then the community, then the city, then the state, then the federal government. Richard Hidalgo on 11/22/2021 10:06:25 AM

Very interesting point - thanks Richard. CP Charles Payne on 11/22/2021 10:35:43 AM

Once again, the LEFT does not mention ALL the taxes and licensing fees that businesses pay every year to be in business. There are weekly payroll taxes. There are matching funds for employee deductions. There are occupational licenses and other licenses to be purchased annually. If a business pays TAXES like this all year long and then breaks even on INCOME TAX, then good for them. The community where that business is located has benefited in multiple ways from the success of that business. Daniel Marvel on 11/22/2021 10:21:09 AM

Flat Tax! Robert Munroe on 11/22/2021 10:33:02 AM

I'm down but not sure it can make it through a gauntlet of special interest. CP Charles Payne on 11/22/2021 10:34:26 AM

I am in favor of keeping corporate taxes low, in the 10% of net profit range. This encourages business activity and investment, and keeps us competitive in the world economy. Personal taxes should be imposed on everyone, as was done many years ago. Half the population paying no income tax is neither fair nor equitable. Carl on 11/22/2021 11:14:10 AM

Things can never be fair. If you want the company to be fair, get a job in a good company and become someone in management. The employees that you manage can then call you unfair and those that manage you will still be unfair. R. Eugene Lawson on 11/22/2021 11:47:07 AM

I believe every person residing in this country should pay some amount of all taxes. You can make it 1% or whatever you want, but no one should pay 0% and certainly no one should get money back without having paid any to start with . Everyone should have skin in the game. Then there is that 10%, that I argue should be 1%, that will ever get it. To me, they should be the responsibility of Charities. As far as "Corporate America" is concerned they should pay 10% to Charities with no control over who gets what. It all goes split equally among the Charities with the people deciding who the Charities are. Separately "Corporate America" should be held to the highest standards of the USA Constitution governed by the Supreme Court who is controlled by the people. RC Robert Clanton on 11/22/2021 2:49:14 PM

'The business of business is business.' Corporations do not pay taxes, its customers and consumers pay the taxes. Any tax is a cost to a business, like raw materials, and is passed down to the Corporation's customers. The government also ignores the billions/trillions of taxes paid by the employees of corporations. Without these corporations, there would be no employees and therefore no taxes to the government. Ken on 11/22/2021 3:59:08 PM

With regard to corporate taxes; Ultimately the consumer pays it in the cost of goods and services. In the words of the late great Hermann Cain, "it's a sneakatax"! Congress needs to reduce it's annual spending. Something that hasn't been done since the end of WWII. Victor Whitlock on 11/29/2021 9:34:00 AM

I for one hold the belief that any income tax on any entity will always be unfair to someone. We should repeal the 16th amendment and replace it with a consumption tax which would eliminate the need for an IRS and empower each and every one of us to know our tax liability. Studies have shown the cost to collect the tax would be significantly reduced. Biden's BBB plan includes some $80B to hire IRS agents to shake us down. That would be an unnecessary cost with a consumption tax. Historically, the Federal government was funded with tariffs. Maybe that's an idea that would encourage manufacturing at home? Seems that was the trend in the last administration especially with regard to China. Victor Whitlock on 11/29/2021 9:50:20 AM

I believe large corporations could improve continuing higher education for their employees. It helps enormously for everyone. Instead of free college which could hurt the level of education and competition. I also believe in contributing to charities, Red Cross, Mercy Ship etc. Corporations should not write it off on taxes, or they can reduce the rate of the write off. This will brighten the hearts of society as well as keep honest competition. A win win for the planet! Monica Ledermann on 12/10/2021 10:26:14 AM

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