The market seems to be unable to decide if it prefers value or growth. Fickle investors once again sold technology stocks in favor of buying more cyclical plays, e.g.
Today’s CPI report reignited inflation fears and the economic ramifications. Truth be told, this market has been overbought and technically overextended and accompanied by decelerating momentum and volume. Now we are witnessing early signs of capitulation. This is healthy and creates the ideal environment for a relief rally.
The preference for value over growth or momentum as a dominant theme may be temporarily succumbing to profit taking. Volume was relatively for the Dow 30 Industrials (DIA), Utilities (XLU), Financials (XLF) and Healthcare (XLV). Also worth mentioning is the 1-month new low on the SP-500 (SPY). Short-term support levels on the SP-500 have deteriorated to less than
In the midst of rising inflation expectations, i.e. 10-year breakeven inflation targets climbing to a new 8-year high @ 2.59%, investors are increasingly shifting their preferences to value. The Dow 30 Industrials escaped today’s selling almost unscathed. As inflation indicators signal rising risks, tangible assets, e.g. commodities and real estate, are likely to benefit, along with stocks representing sectors in energy, materials and financials.
While there were no major economic data releases and the majority of earnings were positive, investors appear to be adopting an aversion towards risk…
…Realization that the global rise in Covid19 infections could slow down the rate of economic recovery more than expected was being reflected in…
SP-500: Bullish reversal is in play and now it needs to overcome resistance @ 3984 to confirm legitimacy. 10-Yr Note Yield: Bullish reversal is indicating a resumption in rising rates. Bitcoin: Selling has ceased and another bullish reversal pattern has formed to establish a higher low on the recent pullback. This translates into continuation of the bullish trend.
Equities SP-500: Bullish trend remains intact but under consolidation. Nasdaq-100: Building support at 22-week moving average and consolidating. Trend has…
Hype is so passé and the investment strategy du jour is “hope”. It is what has been driving this market instead of anything remotely close to quantifiably certain…
Investor sentiment toward risk is definitely shifting. Although mixed economic data was skewed towards “better than expected”, it hardly mattered. This itself is noteworthy as…