It is a solid session, as many folks are away, and volume is extremely light.
More weak economic data this morning added more fuel to the rally that clearly sees the Federal Reserve being pushed back further with respect to tapering. I think they are years away from hiking rates.
Markits Flash PMI Data | Actual | Estimate |
Manufacturing | 61.2 | 62.5 |
Services | 55.2 | 59.2 |
Composite | 55.4 | 58.3 |
Well, that defensive move I wrote about this morning is reversed today. Mega cap growth continues to act great and there is a bounce in cyclical names. I question how sustainable that could be near term. I get the notion that there is greater hope for an uptick in vaccinations after the Pfizer news, but it’s not going to happen overnight.
Existing home sales eked out in front of estimates but it’s Tesla (TSLA), casino, and brick and mortar retailers that are setting the pace.
S&P 500 Index | +0.99% | |
Communication Services XLC | +1.44% | |
Consumer Discretionary XLY | +1.25% | |
Consumer Staples XLP | -0.05% | |
Energy XLE | +3.63% | |
Financials XLF | +1.11% | |
Health Care XLV | +0.37% | |
Industrials XLI | +1.13% | |
Materials XLB | +1.07% | |
Real Estate XLRE | -0.43% | |
Technology XLK | +1.19% | |
Utilities XLU | -1.27% |
Oils Not Well…Yet
West Texas Intermediate (WTI) is making a nice bounce but still a very ugly chart. I’m not convinced it’s time to add to existing positions or start fresh positions.
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