Yesterday’s session never gained traction, which wasn’t surprising. Wall Street’s favorite group enjoyed a solid session. While Health Care (XLV) led the way with six names among the top ten advancers, we also saw another trait of the current rally – when in doubt, go back to growth.

Growth is Value

For investors, the comfort in growth names comes from their strong multi-year performance and the fact that these companies are growing, so it's not about guessing about value based on other factors, like valuation metrics.

On that score, the only factor that worked yesterday was large-cap growth.

More red on the screen, but those big boxes that carry so much weight were mainly green. Moreover, many moved by more than 1% higher in the session.

Yesterday, President Trump took on some of the most powerful entities in the world:

• Russia
• Private Equity
• U.S. Defense Contractors

I have to admit I love it!

His actions roiled parts of the market, which is fine for the greater good and would ultimately be a better driver of the stock market than fiscal and monetary policy. 

On that note, the Fed has made a mess of things, and I can only hope Fed Powell makes it his business to focus on his legacy and Main Street, as the labor market continues to deteriorate.