Friday’s session ran out of steam in the final moments before the closing bell, but even an “up” session would have been deceiving.  

Market breadth was abysmal especially for safer blue-chip names on the New York Stock Exchange.

As the Technology sector, driven by mega cap names, carried the entire market – with an assist from Healthcare.

Move over Thor – Here Comes the Mega Caps

There is no way the market comes back without the leadership of mega cap names.  Right now, I think there are lots of traders in the mix. Smart money has been accumulating for a few weeks, although, nobody is going to show their hand in an aggressive way, just yet.

The new Thor flick crushed it at the box office proving once again people are willing to go out and spend money, albeit the movie theater is closer and cheaper than going to grandma’s house.  The inflation situation is tough, and people are making adjustments.  

Question of the Week: Recession or Inflation?

Everyone is googling recession and inflation, but Wall Street is actually rooting for the former in hopes it will curb or mitigate the Fed’s rate hiking plans.  Which one has a harsher impact on your life?

After the jobs report, the street pushed back the next rate cut to June of next year.  The jobs report was not that great.  In fact, there were some glaring red flags.

Portfolio Approach

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

Equities were under pressure all morning – watch that ten-year bond yield – another failure to stay above 3.00% would be a big positive signal.