Markets Bet On A Return To Big Cities

Posted: Apr 20, 2021 1:23 PM
Markets Bet On A Return To Big Cities

Source: AP Photo/Mark Lennihan, File

It was a particularly listless session from the opening bell to the final moments the market struggled with finding buyers.  On the flip side there wasn’t a mad dash for the exits but I think there is a sense that something is missing.

The second week of first quarter 2021 earnings promises more big beats but perhaps more big yawns as well.  When expectations are this high it's hard to dazzle.

The move into real estate continues.  The sector is benefiting from assumptions folks will return to big cities, storage space will remain in demand and parts of the sector are higher on growing chorus for broadband to be a big part of the eventual infrastructure plan.

The growth bounce needs refreshing as well as the so-called reflation trade.

S&P 500 Index



Communication Services XLC



Consumer Discretionary XLY



Consumer Staples XLP



Energy XLE



Financials XLF



Health Care XLV



Industrials XLI



Materials XLB



Real Estate XLRE



Technology XLK



Utilities XLU



Market Breadth

NASDAQ continues to take it on the jaw as the failure to break through a double top is triggering more selling.  Investors are taking more comfort in blue chip names on the New York Stock Exchange.

Market Breadth









52 Week High



52 Week Low



Up Volume



Down Volume



Technical View

The NASDAQ Composite is meandering at a double top as the hottest niches continue to struggle.  Many of these names are not part of the S&P 500 but its cooling off has influence across all the major equity indices.  


Portfolio Approach

We added to Real Estate today in our Hotline Model Portfolio.

Today’s Session

There is a bidding war for Kansas City Southern (KSU) , something I was looking for years ago.  Canadian National has made a $33.7 billion offer or $325 a share which is significantly above the Canadian Pacific bid and 45% above yesterday’s close.

There is a ton of excitement over Netflix (NFLX) reporting after the bell.  The street is mixed, although most expect to see sign-ups stalling.  I think the company is still positioned for growth and still has significant pricing power.