Yesterday was a good session. Heck, you could even say it was a very good session because the market climbed without the workhorse, which took a breather.

Of course, we are spying Energy (XLE) for a major rebound at some point, and I think Materials (XLB) will outperform this year. However, the main challenge for the entire market is getting and maintaining traction.

Very Intriguing

• Marine Transportation
• Steel
• Oil Equipment & Services
• Containers & Packaging

These are the industries where we the see most potential now – working on the buy list.

Ahead of the Fed

There are more signs a recession is already baked in the cake, and if that were the case, it would give Powell cover to chill and wait. But he has to believe it’s baked into the cake, and he has different crystal balls.

The Street continues to rail against the earnings consensus being too high, and that’s probably true. Still, by the time earnings season rolls around, I expect lowered numbers to provide lots of positive upside surprises.

Portfolio Approach

We added a new Material position in the Hotline model portfolio.

Today’s Session

Reports the administration is ready to provide SVB like coverage to all banks is giving that sector and the market a rebound.  The details are sketchy (more than likely nonexistent), however; it is clear Yellen and others are aware they made a huge mistake bailing out the Billionaires of Silicon Valley while telling other Americans to pound sand.  Excerpts below

Janet Yellen will signal further US government backing for deposits at smaller American banks if needed, a shift that seeks to protect parts of the country’s banking system struggling in the recent financial turmoil.

“The steps we took were not focused on aiding specific banks or classes of banks,” Yellen is expected to say in a speech to the American Bankers Association on Tuesday.

“Our intervention was necessary to protect the broader US banking system. And similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion.”

Loving the action this morning.

Tweet

 

Home | Products & Services | Education | In The Media | Help | About Us | Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.