Well, yesterday was a good day. The rally held, but it lost some altitude with less than an hour to go as New York reported its highest single day of total Covid-19 cases since January at 11,300. This was right after it was revealed that a second U.S. Omicron case was a Minnesota man who recently visited the big convention center in NY City. Not surprisingly, later in the evening, NY reported five Omicron cases.

The 52-week lows continue to mount as new highs are moving close to single-digit counts.

Market Breadth	NYSE	NASDAQ
Advancing	2,520	2,994
Declining	870	1,650
52 Week High	17	31
52 Week Low	188	619
Up Volume	4.16B	3.47B
Down Volume	841.57M	1.80B

NASDAQ: Feast or Famine

With the spotlight on those mega-cap growth juggernauts, it has been lost how many stocks in the NASDAQ Composite have been completely wrecked. In fact, those names are an oasis in a desert of despair. But they can turn the corner quickly – meanwhile, the NASDAQ continues to straddle the 50-day moving average, and that’s good news.

Script Intact

Much has been made about how well this market has straddled seasonal patterns, but the script is in trouble if the S&P 500 doesn’t hold today to set up a big year-end move to begin next week.

Off-Script

The 10-and 2-year yield curve continues to flatten, and that could be the wildcard against all those predictions the Fed will be trying to slow inflation by slowing the economy. Heck, if the economy shifts to a recession, it’s doubtful Powell & Co. would be hiking rates.

Government Shutdown

Ironically, this is not a stock market story anymore, and it’s hardly a Washington, D.C. story. In a sense, it will end like it always does with the debt ceiling raised at some point. The market has rallied in recent years on shutdowns, perhaps because the government wasn’t spending the money it usually would, and the national debt clock would slow. By the way, congratulations are in order as our debt finally crossed above $29.0 trillion.

USA, USA, USA

Portfolio Approach

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

Today’s Session

The major indices are trading up on the heels of the nonfarm payroll report. November added 210,000 jobs, which was less than forecast of 550,000 and the lowest number since December 2020.  Employers are still having a hard time hiring and retaining employees.  

• Average Hourly Earnings m/m 0.3% vs 0.4% consensus
• Average Hourly Earnings y/y 4.5% vs 5% consensus
• Average Weekly Hours 34.8% vs. 34.7% consensus
• Laborforce Participation rate 61.8% vs 61.7%

Comments

Good morning, Charles! I really appreciate your daily comments along with watching your show at 2pm. I told my Financial Advisor that I receive your daily commentary and Tim is a fan of yours as well, he's been my Advisor for 25 years and does a great job, Tim worked for me after he had his MBA and just before he received his Certification. I used to buy Soybean Oil futures, coffee bean futures, pork bellies futures through manufactures to control the cost of food items that companies I worked for manufactured and I kid Tim telling him that they need to invent a sedative for these crazy algorithms, but I think the guys who develop them need a sedative or psychological help! I argue with Liberal friends, that these CEO's need to sell products to China, but make products here, and make China pay! I listen to Jamie Dimon, I own JPM, politics and personal feelings aside and others, and I don't understand how they continue to put bottom lines over America and Freedom! It's amazing that some of the brightest minds running corporations don't figure it out! Bite the bullet! Continue your great work! Have a great weekend! Chuck Charles LaCortiglia on 12/3/2021 10:18:36 AM

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