Wall Street Strategies
Hello! Sign in or Register


Morning Commentary

GOODBYE, SEPTEMBER (AND GOOD RIDDANCE) †

By Charles Payne, CEO & Principal Analyst
9/29/2023 9:53 AM

Yesterday was another see-saw battle that saw the market turn higher into the close. The gain was no great shakes, but the effort is noteworthy.

Once again, the worst-performing sector and the only one to finish in the red was Utilities (XLU). Historically, it is the most incredible place to ride out weakness and trepidation.

I get everyone is on edge, but that’s one of the biggest reasons to remain calm, relaxed, and collected.  The next step from taking deep breaths is to find deep discounts. On that note, shifting through the bottom of the firepit is wrong, but big-time opportunities are evolving.

A screenshot of a graphDescription automatically generated

Most Impressive: Semiconductors

AGCO Corp (AGCO) acquired Trimble Ag Assets and Technologies (TRMB), which is evolving into an Ag-Tech play. Still, I was most impressed with the semiconductor names, which rallied even after Micron Technology (MU) stunk up the joint.

A table with numbers and a few numbersDescription automatically generated with medium confidence

The VanEck Vectors Semiconductors ETF (SMH) is on the cusp of a significant breakout that could see it retest the 50-day moving average.

. Chart

Least Impressive: Utilities

AES Corp (AES) and Nextera (NEE) were the second and third worst-performing sectors. Something is wrong here, but I’m not sure what.

A screenshot of a tableDescription automatically generated

XLU volume erupted to a multi-year high on massive selling.

Chart

Heat Map

Overall, the Heat Map was very impressive.

S&P 500 Map

Market internals were much better, although the volume was very light.

Market Breadth

NYSE

NASDAQ

Advancers

1,996

2,656

Decliners

900

1,680

New Highs

42

38

New Lows

223

310

Up Volume

2.77 billion

2.80 billion

Down Volume

1.04 billion

1.78 billion

There is too much pessimism out there, and I think it’s almost time to pounce.

Portfolio Approach

There are no weighting changes in the Hotline Model Portfolio.  We are adding 2 stocks back to the Current Buy list that were suspended. If you are not a current subscriber to our Premium Hotline service, contact your account representative or email Info@wstreet.com to join today.

A close-up of a chartDescription automatically generated

Today’s Session

Jay Powell’s favorite inflation gauge is out, and it is okay news – which these days is sign–of–relief news.  This Fed seems hell-bent on more rate hikes, but this kind of data holds them at bay.  I’m hopeful enough data will come out before the December meeting to keep the Fed on ice into 2024, where political pressure will make them think twice about going too far.

A screenshot of a reportDescription automatically generated

Core PCE is under 4.0% for the first time since July 2021. High by historical standards but moving lower.

United States Core PCE Price Index Annual Change

I’m sure some will point to spending increasing, even as income growth slows, as a sign of a strong consumer. 

Americans love to spend, which is why this is a ‘trickle up’ economy, but I say don’t conflate spending on higher gasoline as some kind of positive for the consumer.

A graph of a number of monthsDescription automatically generated with medium confidence

Stock of the Day

Nike (NKE) is the stock of the day after posting financial results after the close yesterday.  This will be presented as a sign of a strong US consumer. That’s not the case.

IPO Cautionary Tale of the day

Blue Apron (APRN) is being taken over for $13.00 a share, which means the stock will be up 134% this morning.  But remember, adjusted for two splits, the high on the stock was $1,687 a share.

Wall Street made a bundle selling this overhyped name to Main Street.  The experts call Main Street investors “dumb money” and trick them into these kinds of deals.

A graph with blue and orange linesDescription automatically generated


 

Log In To Add Your Comment


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

 

×