Morning Commentary
There’s an old saying about the rug being pulled out from under someone or something. An abrupt move that thwarts momentum while sending the target into a swift fall. That was the case on Friday when a run of the mill session finished with sharp spike in ten-year bond yields, which sent stocks tumbling.
Market breadth was overwhelmingly bearish.
Market Breadth |
NYSE |
NASDAQ |
Advancers |
926 |
1,655 |
Decliners |
2,218 |
2,863 |
New Highs |
43 |
68 |
New Lows |
63 |
248 |
Up Volume |
1.37 billion |
1.65 billion |
Down Volume |
2.44 billion |
2.58 billion |
And all major indices moved lower – especially the NASDAQ and Russell 2000.
Heat Map
The late swoon took every sector with it save Communications Services – which really needs a break.
There were intriguing green spots, including Tesla (TSLA) and Disney (DIS). Some Financial names caught our attention as well, including Morgan Stanley (MS).
In the Technology space Broadcom (AVGO) continues to ‘act’ good – like something is brewing.
Internals are weakening, as the tables turn. Energy names are really compelling – it wasn’t long ago when the entire sectors was changing hands above its respective 50-day moving averages.
It’s all about news this week with CPI the most important release and Powell’s comments Wednesday.
CPI
The Cleveland Fed sees lower CPI on a month to month and year to year basis. Smaller prints would spark big upside moves in the market- the same is true on the downside.
For the record, the Cleveland Fed is better at guessing the CPI than the Atlanta Fed is with GDP.1
Portfolio Approach
There are no sector changes this morning to our Hotline Model Portfolio.
Today’s Session
Merger Monday is back
Other than merger news, there is no reason to jump on a start in the plus column.
Tweet |
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3/30/2023 1:54 PM | Losing Some Steam |
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3/29/2023 1:37 PM | Bottom Fishers |
3/29/2023 9:41 AM | TOO CALM AND COMPLACENT? |
3/28/2023 1:31 PM | No Fireworks |
3/28/2023 9:47 AM | TIME MACHINE RALLY |
3/27/2023 1:34 PM | Holding Pattern |
3/27/2023 9:59 AM | SUDDENLY, BULLISH IS WHERE IT’S AT |
3/24/2023 1:25 PM | Magical |
3/24/2023 10:14 AM | YELLEN’S TWO-STEP TRIPS UP THE MARKET |
3/23/2023 1:14 PM | Embarrassing Snafu |
3/23/2023 9:37 AM | GOVERNMENT OFFICIALS PROTESTING TOO MUCH |
3/22/2023 1:23 PM | All Quiet |
3/22/2023 9:42 AM | THE MOMENT OF TRUTH #1,309 |
3/21/2023 1:12 PM | Lots of Questions |
3/21/2023 9:49 AM | WHAT’S INSIDE POWELL’S CRYSTAL BALL? |
3/20/2023 1:58 PM | All Over the Place |
3/20/2023 9:36 AM | FED COUNTDOWN BEGINS |
3/17/2023 1:45 PM | Banks Remain Vulnerable |
3/17/2023 9:54 AM | FED VS THE FED (IT’S COMPLICATED) |
3/16/2023 1:27 PM | Another Crazy Day |
3/16/2023 9:53 AM | THRILL RIDE |
3/15/2023 1:43 PM | Economic Data Overshadowed |
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