I’m still musing about that session on Friday that was supposed to be a disaster. It wasn’t. But it was more defensive, and cyclicals also came to life.
Volume was light, but there were more new highs than lows on the NASDAQ – great sign.
Small Caps Roar
It’s been a good earnings season for small caps, which have begun to catch bids in part because they were so oversold. The S&P 600 Index is changing hands at a forward PE of 12.3%. The chart is very compelling but runs into wall of resistance that takes it to the shadow of the 200-day moving average.
In June, less than 15% of the SML were trading above their 100-day moving average. Now, the number is above 43, but there is a lot more room on the upside.
Meanwhile, the ten- and two-year yield curve inverted to -0.497%, which screams recession.
The market was building a lot of steam heading into the open when Nvidia (NVDA) issued a big earning warning. That knocked some of the wind out of the move.
|6/6/2023 1:23 PM||Resolve and Opportunity|
|6/6/2023 7:28 AM||RUNNING OUT OF STEAM|
|6/5/2023 1:33 PM||So Far So Good|
|6/5/2023 9:57 AM||WHAT A TRIP|
|6/2/2023 1:37 PM||Jobs Rally|
|6/2/2023 9:56 AM||JOBS REPORT ON DECK|
|6/1/2023 1:48 PM||Fascinating Resolve|
|6/1/2023 9:32 AM||A Punt Not a Pause?|
|5/31/2023 1:31 PM||Rolling Over|
|5/31/2023 9:44 AM||PAUSE TO ASSESS|
|5/30/2023 1:50 PM||Nvidia Jumps|
|5/30/2023 9:50 AM||FREE PASS FOR $5.0 TRILLION MORE IN DEFICIT SPENDING|
|5/26/2023 1:23 PM||Happy 127th Birthday Dow Jones Industrial Average|
|5/26/2023 9:48 AM||Generals Only|
|5/25/2023 1:37 PM||Intel Sinks as Nvidia Pops|
|5/25/2023 9:55 AM||SURPASSING THE HYPE|
|5/24/2023 1:28 PM||A Little Cynical|
|5/24/2023 9:38 AM||PRESSURE BUSTS PIPES|
|5/23/2023 2:03 PM||Uncertainty Continues|
|5/23/2023 9:33 AM||NEW HIGHS ON THE RISE|
|5/22/2023 1:44 PM||Somewhat More Positive Day|
|5/22/2023 9:48 AM||THE X FACTOR IS EVERYTHING|
|5/19/2023 1:49 PM||Debt Ceiling Hiccup|
|5/19/2023 9:47 AM||THIS IS IT?|
|5/18/2023 1:54 PM||Market Mixed|
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