Charles Payne's Market Commentary

Morning Commentary

GONE FISHING

By Charles Payne, CEO & Principal Analyst
6/7/2022 9:40 AM

There’s an old saying to as, “Go fly a kite!” which is used dismissively, not unlike the old W.C. Fields line, “Go away kid, you bother me.” I was kind of reminded of both as I watched yesterday’s session. Although it’s “Like watching paint dry”, it was also apropos. Still, I am digging the new highs to lows on the New York Stock Exchange (NYSE).

Market Breadth	NYSE	NASDAQ
Advancers	1,798	2,318
Decliners	1,455	2,373
New Highs	83	66
New Lows	54	201
Up Volume	2.75 billion	2.45 billion
Down Volume	1.56 billion	2.13 billion

I am also still digging the continued recovery in mega-cap names.

Sector Watch

And ‘the last shall be first’ continues to be the theme as bottom-fishers keep nibbling on oversold names.

The action in bond yields tripped up stocks – the question is whether that 40-year rally is truly over.

The damage in the bond market cannot be understated. If the year ended yesterday, it would be the worst year ever.

Some buy-on dippers showed up a couple of weeks ago – if that’s it, then look for the long-predicted Great Rotation in stocks.

Right now, the market waiting for the Consumer Price Index (CPI) report on Friday, and it’s a simple equation:

Too hot, and stocks get slammed.
Signs of cooling and stocks put in a strong session.

Portfolio Approach

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

Today’s Session

Equity futures have been under pressure all morning long, but buyers were nibbling here and there. Then news from Target (TGT) sealed the deal for a lower start to the session.

Citing its massive inventory build, Target significantly lowered its guidance for the current quarter.

I’m surprised how hard the news hit the market. It had to happen and was the reason we closed out the position. I also used it as a lesson on recent Payne’s Perspective

To read the report, click here.

Comments

There's another old saying: "Sell in May and Go Away." Looks like 2.65% support level on the 10 year held with the rebound to 3% (which I believe is now support. The recent pullback being a test of the 3% support level). What do you think? CP

Charles Haselberger on 6/7/2022 10:37:49 AM

PS: Thanks Much for the access to the latest Payne's Perspective. ALWAYS a worthwhile read!

Charles Haselberger on 6/7/2022 10:39:32 AM

Log In To Add Your Comment

PREVIOUS COMMENTARY

7/1/2022 1:42 PM	Enjoy your Fourth of July
7/1/2022 9:33 AM	Devastating Half
6/30/2022 1:50 PM	Theater of the Macabre
6/30/2022 9:29 AM	THINGS WE DON’T UNDERSTAND
6/29/2022 1:53 PM	Choppy Session
6/29/2022 9:28 AM	ASSETS GIVE UP
6/28/2022 2:05 PM	Early Bounce Faded
6/28/2022 9:55 AM	WAKE ME UP WHEN THE ACTION STARTS (AND SELLING STOPS)
6/27/2022 1:57 PM	Waiting for Nike Results
6/27/2022 9:35 AM	AND THE LAST SHALL BE FIRST (SOMETIMES)
6/24/2022 1:31 PM	Rocket Fuel
6/24/2022 9:43 AM	TINY SIGNS BUT SIGNS NONETHELESS
6/23/2022 1:34 PM	Waiting Game
6/23/2022 9:41 AM	BIDEN’S BLAME GAME BLOWS RALLY ATTEMPT
6/22/2022 12:55 PM	Bottom Making Process
6/22/2022 9:29 AM	NICE BREAK - BUT THE BEAR IS IN CONTROL
6/21/2022 1:29 PM	Digging the Spunk
6/21/2022 9:28 AM	DIAMONDS AMID THE RUINS
6/17/2022 1:22 PM	Black Gold
6/17/2022 9:41 AM	HIT PARADE
6/16/2022 1:07 PM	Recession Fears
6/16/2022 9:37 AM	They Did It
6/15/2022 1:20 PM	Bracing for Fed Decision
6/15/2022 9:40 AM	Fed Watch
6/14/2022 1:46 PM	Cut It With A Knife
More commentary archives