Morning Commentary
Although six sectors finished higher, the S&P 500 limped yesterday into the close as Technology (XLK) was weighed down by semiconductors and hardware.
Breadth was strong in Energy (XLE), Real Estate (XLRE), and Financials (XLF).
Trick or Treat?
There are many reasons to believe this market will continue moving higher and shift into what everyone calls a “melt up.”
The problem is institutions are dumping stocks with both hands.
Meanwhile, retail investors told the Conference Board that the market is going to the moon. When taking in those who think the stock process will move higher, minus those who think it will move lower in the next twelve months, the tally is a new record dating back to 1987.
Last night, key earnings reports saw initial moves higher and then lower in after-hours trading. There were no disastrous moves, and the names are beyond mind-boggling. In the past twelve months, today and tomorrow usually see the week's biggest moves.
Bonds rebounded yesterday, which was long overdue.
Today’s Session
Lots of nitpicking in tech calls putting some pressure on Meta (META) and Microsoft (MSFT), but these companies are monsters and positioning for dominance. They are spending a ton of money to be positioned to dominate and that means near-term pressure on margins.
The percentage change in spending continues to outpace the percentage change in income. Don’t worry they will use a seasonal adjustment to lift our savings rate up once it gets back under 3.0.
Comments |
What are we to make of institutionals selling? Profit taking? Election? De-risking? What? Tom Woodall on 10/31/2024 10:05:53 AM |
Correct, election uncertainty. Karina Hernandez on 11/6/2024 9:10:52 AM |
Tweet |
11/20/2024 1:11 PM | All Eyes on Nvidia |
11/20/2024 9:50 AM | GENERALS TO THE RESCUE |
11/19/2024 1:30 PM | Shaken Off Fears |
11/19/2024 9:37 AM | TERRA FIRMA |
11/18/2024 12:57 PM | Animal Spirits |
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11/15/2024 1:12 PM | Continued Pressure |
11/15/2024 9:43 AM | CERTAIN CUTS (TRUMP ADMIN) & UNCERTAIN CUTS (POWELL) TRIP RALLY |
11/14/2024 1:38 PM | Muted |
11/14/2024 9:57 AM | Just Win |
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11/13/2024 10:01 AM | RENEWED HOPE FOR PEACE & STRENGTH |
11/12/2024 1:33 PM | Profit Taking Tuesday |
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11/11/2024 1:07 PM | Tired Rally |
11/11/2024 9:49 AM | The Markets Are Pumped |
11/8/2024 1:04 PM | Stellar Week |
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11/7/2024 9:55 AM | THE SWAGGER IS BACK |
11/6/2024 1:25 PM | Trump Trade Bonanza |
11/6/2024 9:47 AM | Election Rally |
11/5/2024 12:54 PM | Holding the Script |
11/5/2024 9:50 AM | VOTE, AMERICA |
11/4/2024 1:32 PM | Election Fear |
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