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Morning Commentary

HOW SWEET IT IS (EVEN FOR ONE DAY)

By Charles Payne, CEO & Principal Analyst
7/18/2022 9:50 AM

How sweet it is to be loved by you

How sweet it is to be loved by you

I needed the shelter of someone's arms

And there you were

I needed someone to understand my ups and downs

And there you were – James Taylor

It was another ugly week, but Friday’s session was such a relief that it had me singing James Taylor songs. Unfortunately, volume was light, and there were only 44 new highs. Still, it was hopeful as every sector finished higher.

Market Breadth

NYSE

NASDAQ

Advancers

2,605

3,134

Decliners

632

1,386

New Highs

9

35

New Lows

85

164

Up Volume

2.99B

2.79B

Down Volume

516.7M

1.04B

Same Tide

On the Bank of America Bull & Bear Indicator ‘Flashing Huge Buy Signal’ – everyone is bearish. The same tide lifts all ships, although Financials (XLF) clearly enjoyed the biggest part of the wave.

Investors are gunning for big gains to make up for big losses, which means going back to tech – profitable and non-profitable.

Earning Season has begun.  And here are a few big names that have reported thus far:

Portfolio Approach

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

Today’s Session

Positive reactions to earnings from key financial players, including Goldman Sachs (GS) and Bank of America (BAC), where the CEO continues to talk up the strength of the American consumer. From Chair and CEO Brian Moynihan:

 “Our U.S. consumer clients remained resilient with continued strong deposit balances and spending levels. Loan growth continued across our franchise and our markets teams helped clients navigate significant volatility reflecting economic uncertainty. As we enter the second half of the year, we believe we are well-positioned to deliver for our shareholders while continuing to invest in our people, businesses and communities.”

The XLF makes a major breakout through 32.60.


 

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