I wish I could say that it was in honor of the Winter Olympics, but this market has been tough sledding for several reasons. This time, shorts smell blood in the water, as investors retreated to the safety of “low volatility” names.

As they did last spring, when institutions fled, and hedge funds built massive, short positions, retail investors are buying the dip, especially in software (IGV), which has paused its freefall.

(True) Leadership?

Coming into the week, Energy (XLE) and Consumer Staples (XLP) enjoyed monster moves higher.

My problem with these moves is that they're going in the opposite direction from current-quarter earnings estimates, which are down dramatically for both sectors. I question how much of this money wants to stay long and chase performance, which is why we have little exposure in the model portfolio.

Jobless Boom

I have been pondering whether or not there could be a jobless economic boom for over a year.  I’ve asked some very smart people, and the best answer is that such a condition could happen, but would be short-lived. I’m not so sure.

The productivity miracle that could be upon us right now is powered by artificial intelligence (AI), which seems to cast a dark shadow over a new industry each day.  Yesterday it was financial advisers:

• Raymond Jackson Financials (RJF): -8.7%
• LPL Financial Holdings (LPLA): -8.3%
• Charles Schwab (SCHW): -7.4%

Data analytics stocks also took another dubbing:

• S&P Global (SPGI): -9.7%
• MSCI Inc (MSCI): -7.8%
• Moody’s Corp (MCO): -6.8%

This morning’s jobs number is anyone’s guess, but most are bracing for a huge negative print.