Despite Profit Taking, Sentiment Still Favors Value

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

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“FOMO” Trade in Deceleration Mode

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…

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US Stocks Advance Cautiously on Light Volume

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.

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Words of “Capital Gains Tax Increases” Curse Market Rally

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!)

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Investors Fear “FOMO”

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…

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