Friday was another session with lots of choppiness and a slight downside bias. Again, big banks were the clear winners, but the session was a lot uglier than -0.21% for the S&P 500 would suggest.

There were significantly more decliners than advancers, and the down volume swamped the tally for the up volume. It was interesting to see more new highs than lows on the New York Stock Exchange (NYSE).

Market Breadth	NYSE	NASDAQ Composite
Advancers	1,018	1,434
Decliners	1,945	2,954
New Highs	46	71
New Lows	40	222
Up Volume	1.39 billion	2.91 billion
Down Volume	2.09 billion	4.65 billion

Sectors Watch

It was also interesting to see defensive sectors take it on the chin.

Heat Map

Banks stand out on the Heat Map, but I also liked the action in Industrials (XLI), which got spooked earlier in the week. However, I think they are now oversold.

NOW Regional Banks

Big banks saw deposits increase over the quarter but were down from a year ago. Those deposits came from somewhere:

Total Deposits:

• Citigroup $C: -0.2%
• Wells Fargo $WFC: -8.0%
• JPMorgan $JPM: -7.2%

Total loans:

• Citigroup $C: -1%
• Wells Fargo $WFC: +4%
• JPMorgan $JPM: +5%

Portfolio Approach

We took profits in a position in Real Estate on Friday afternoon in our Hotline Model Portfolio. 

Today’s Session

Empire State Manufacturing report out this morning came in far better than expected.

•  10.8 Actual
• -18.0 Consensus
• -24.6 Previous

Key Metrics

Prices are coming down and that’s critical.

Earning season picks up big time this week.

 

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