The market continues to move in a tight trading range, with cash sloshing back and forth but staying in the mix. As a result, this coil spring could see a monumental breakout or pullback to 4,075 (see chart).

Sector Watch

The most noticeable aspect of yesterday’s session was the action in traditional safe havens. However, I think equity investors are ready for a return that justifies the risk.

While talk of a recession grows louder, commodities act as though inflation isn’t going away as a key hurdle for the economy and investors.

We have been in this narrow range for some time with lots of uncertainty. But I respect the bias of the market, which to me, is much more important than the bias of the Street. Yes, the bears have ammo, including history, but there are also times in history that were just like this – where it seemed the next leg had to be lower.

It’s like the number of professional investors that have piled into bonds. The last time it was this high, the market was putting in a bottom ahead of a monster multi-year rally that changed people’s lives.

I’m trying to be nimble but also with exposure – because you have to be in the market when it feels like this in order to reap the largest rewards.

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Portfolio Approach

We took profits in a Technology position yesterday in our Hotline Model Portfolio.

Today’s Session

The market looks like it is taking the lead from Morgan Stanley (MS), which posted quarterly financial results this morning that have too much hair on them.

Earnings beat, and most key metrics came in better than consensus, including net interest, FICC and wealth management.  But investment banking is stuck in quicksand – not good for an investment banking company.

Meanwhile, bond yields are inching higher and general angst permeates the air.

Market breadth is improving in these midday mini-rallies, but the market is looking for a clear cut signal.

Now we are holding our breath for Tesla (TSLA) after the bell.  Netflix (NFLX) had a mix quarter and the stock has bounced in a narrow range overnight.  I think it will be fine, but volatile.

A World of Moochers?

NFLX password sharing restrictions are coming in Q2:

"So that launch we are doing in Q2 is a very broad launch, it includes the United States, includes many, many other countries. I mean, we reserve the right for some countries where we think there’s a different approach"

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