Don’t look now, but Technology (XLK) woke up yesterday as investors cashed in some gains on safe haven names. With the ten-year yield edging to 3.476%, growth names are becoming more attractive.

Make no mistake, big tech gains were low but underscore the fact lots of would-be buyers are watching.

Angst

The market is on edge. The Atlanta Fed’s Wage Growth Tracker was updated yesterday, with the overall number nudging to 6.4% from 6.3%. Someone or something read this as inflationary, and the market hit an air pocket. Job leavers are getting paid as well as the 16-24 cohort.

We enter today’s session with a ton of angst and a market that wants to move higher. But investors are also ready to scramble to the closest foxhole.

Portfolio Approach

There are no sector weighting changes today in the Hotline Model Portfolio.

Today’s Session

The Producer Price Index surpassed consensus on the headline and core reads, but the trend is still in place. 

The 7.4% read from year ago is down from 11.7 print in May and lowest since March. 

Month to month did spike, but again, the trend is lower.

It’s all about food as energy prices have stalled and come down a tad.