President Trump notified the world that he would be leaving Walter Reed National Military Medical Center, and the stock market went into overdrive.
All the major indices closed near the highs of the session. And in the process, they pierced key resistance points. Let’s see if there is any consolidation, but technically, there should be a clear shot back to the September 2nd highs.
S&P 500 Index
Communication Services XLC
Consumer Discretionary XLY
Consumer Staples XLP
Health Care XLV
Real Estate XLRE
Widening Winner’s Circle
What’s even more encouraging is that buying is fanning out with the winning column and climbing rapidly.
S&P 500 winners are now at the highest level since September 2nd. The average gain is just about the same (243 winners with an average gain of 23.5%).
- 227 average gain: +23.32%
- The top 20 average gain: +83.74%
Nasdaq winners are now at the highest level since the Covid-19 selloff. And now, there are more winners than losers for the year (506 versus 503). Moreover, the gains have been monstrous. The average gain for the winners; 71%, and the top 20, 590%.
- 506 average gain: +71.47%
- The top 20 average gain: +589.93%
Zoom Video Communications
Livongo Health Inc
Forte Biosciences Inc
Plug Power Inc
Celsius Holdings Inc
Arcturus Therapeutics Ltd
Exp Realty International
Acme Research Inc
Twist Bioscience Corp
Market breadth was strong, although there were more losers than I would have guessed for such a strong session.
- 2,290 advancers
- 773 decliners
- Up volume: 3.11 billion
- Down volume: 658 million
- 2,629 advancers
- 861 decliners
- Up volume: 2.87 billion
- Down volume: 754 million
New 52-week highs for the New York Stock Exchange and the NASDAQ Composite reached their highest levels since September 2nd at 119 and 128, respectively.
Hotline Model Portfolio Approach
There were no changes to the Hotline Model Portfolio yesterday. Today, we are adding a position to Materials.
- Jinko Solar (JKS), 21% of the float is short
- Alteryx (AYX), shares popped after-hours after CEO guides financials higher
While 75 bps is low for a bond yield its breaking out and signaling good things for the economy and stock market. We are looking for a move to 1.00% from here.
To see the chart, click here.