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
Signs of improving labor market conditions and economic data indicating increased productivity and declining labor costs offset early morning selling and enabled the Dow and S&P 500 to rally into positive territory. This essentially neutralized
US stock markets ended an unimpressive session in positive territory and continue to consolidate their recent uplegs. The wide breadth of positive earnings and a better than expected GDP growth for Q1-2021 had little impact. In fact more signs of distribution selling appeared. Approximately 73% of today’s…
US stock markets were beginning to stall at current levels which are confirming resistance. To reiterate, this market is overbought and deficient in volume. Essentially, the FOMO trade is decelerating and running on fumes. However, two outlier sectors are…
Market Moving Event(s): Stronger than expected economic data from the US and Europe, along with stabilizing 10-Year Treasury rates, enabled equity markets to recover losses from earlier in the week to finish relatively unchanged. Meanwhile, investors continue to weigh the prospects of Biden’s proposed capital gains tax targeting high income earners vs what may be compromised during negotiations.
It was all “fun and games” until someone mentioned the most vile and profane word known to Wall Street, i.e. taxes. Not that it was new news, but apparently investors didn’t want to hear anymore about President Biden’s proposed doubling of the capital gains rate for anyone earning over $1mm per year. (If my 4th grade teacher Sister Margaret heard him say this, she would have washed his mouth out with soap!)
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…
Initially, the market resumed its decline from yesterday’s closing session due to the bleak prospect of Congress passing a pandemic stimulus package to offset current economic weakness. However…
Hopes of a stimulus jumpstarted stocks from yesterday’s losses but were dashed once it became apparent that its passage faces opposition from both sides of the ailse, albeit for different reasons. With Senate GOP leader McConnell…
New 3-day lows have a high probability for continuation patterns but such was not the case today as stocks rallied to recoup most or all of their losses. This time it looks like bears got spooked instead of bulls.