Man, that was a slow-motion death yesterday, squeezing out more losses, mostly in names that have already taken it on the chin. It was a capitulation, although not corroborated by a spike in volume. There were three sectors higher on the day as investors ran into their traditional foxholes.

The big damage was on the NASDAQ Composite, where 403 names finished the session at new 52-week lows. The volume was very light, underscoring the theme of 2022 – ‘buyers strike.’  There is a lot of dry powder, but once growth names lurched into the negative column, all bets were off.

Market Breadth	NYSE	NASDAQ
Advancing	1,654	1,513
Declining	1,710	3,133
52 Week High	136	112
52 Week Low	93	403
Up Volume	1.65B	1.11B
Down Volume	1.90B	2.61B

NASDAQ-100

The NASDAQ-100 (NDX) is like Mount Olympus – it’s where all the omnipotent names change hands.  The percentage decline for some of these names that look oversold and even poised to bounce is amazing. There is some support here, but the biggest downside test could be the 200-day moving average, which coincides with a gap of around 14,750.

Portfolio Approach

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

Today’s Session

Earning’s Season

Big bank earnings did not come to the rescue this morning. This should not be a surprise, considering that for at least two years (eight quarters), only twice were shares of JP Morgan (JPM) and Citibank (C) higher the same day, and only once were the shares higher a week later.  

JP Morgan

Date	Quarter	EPS	Surprise	Revs	Cons.	1-Week %	1-Day %
1/14/22	Q421	$3.33	+$0.32	$30.3B	$29.9B	0%	0%
10/13/21	Q321	$3.74	+$0.74	$30.44B	$29.76B	+1.9%	-2.6%
7/13/21	Q221	$3.78	+$0.58	$30.5B	$29.96B	-7%	-1.5%
4/14/21	Q121	$4.50	+$1.40	$32.3B	$30.52B	-3.1%	-1.9%
1/15/21	Q420	$3.07	+$0.45	$29.2B	$28.7B	-3.8%	-1.1%
10/13/20	Q320	$2.92	+$0.69	$29.1B	$28.29B	-2.9%	-1.9%
7/14/20	Q220	$1.38	+$0.34	$33B	$30.29B	-0.9%	0%
4/14/20	Q120	$0.78	-$1.06	$28.3B	$29.67B	-9.1%	-5.3%

Citibank 

Date	Quarter	EPS	Surprise	Revs	Cons.	Gd.	1-Week %	1-Day %
1/14/22	Q421	$1.46	+$0.09	$17B	$16.77B	N/A	0%	0%
10/14/21	Q321	$2.15	+$0.35	$17.2B	$17.08B	N/A	+2.2%	+0.8%
7/14/21	Q221	$2.85	+$0.89	$17.5B	$17.2B	N/A	-3%	-0.3%
4/15/21	Q121	$3.62	+$1.02	$19.3B	$18.82B	N/A	-4.3%	-1.7%
1/15/21	Q420	$2.08	+$0.74	$16.5B	$16.71B	N/A	-10.5%	-7.1%
10/13/20	Q320	$1.40	+$0.48	$17.3B	$17.22B	N/A	-7.9%	-6.3%
7/14/20	Q220	$0.50	+$0.22	$19.8B	$19.11B	N/A	-6%	-6%
4/15/20	Q120	$1.05	+$0.01	$20.7B	$19.01B	N/A	-5.8%	-2.9%

Retail Sales

Retail sales for December were down 1.9% month over month, the lowest read in 10 months.  Omicron contributed to the slowdown. Supply chain concerns also added to consumers spending for the holiday earlier, and November was revised higher by 0.2%.

December Monthly Sales Retail & Food Services	M/M	Y/Y
Headline	-1.9	+16.9
Motor Vehicle & Parts	-0.4	+10.2
Furniture	-5.5	+11.1
Electronics	-2.9	+14.6
Building Materials	+0.9	+12.5
Food & Beverage (at home)	-0.5	+8.4
Health & Personal Care	+0.5	+8.4
Gas Stations	-0.7	+41.0
Clothing	-3.1	+29.5
Sporting Goods	-4.3	+18.1
General Merchandise	-1.5	+14.6
Department Store	-7.0	+22.5
Internet	-8.7	+10.7
Food & Beverage (away from home)	-0.8	+41.3

Category highlights (prior month)

• Building Materials +0.9% (+0.7%)
• Health & Personal Care +0.5% (-0.6%)
• Motor Vehicle & Parts -0.4% (-0.1%)
• Food & Beverage (At home) -0.5% (+1.3%)
• Gas Stations -0.7% (+1.7%)
• Food & Beverage (away from home) -0.8% (+1%)
• Sporting Goods -4.3% (+0.7%)

The market is under pressure this morning, as banking and financial stocks traded lower, however well off the worst levels. The Nasdaq has gone positive and the S&P 500 is nearing the flat line.

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