The market was off for the week, but it could have been a lot worse, as the indices were tested and came back nicely.
Materials (XLB) were up +2.60% and the only sector that had a meaningful pop ahead of today’s signing of the infrastructure bill by President Biden.
It was feast or famine with monster declines:
- (XLY) Consumer Discretionary: -3.54%
- (XLE) Energy: -1.22%
- (XLU) Utilities: -0.85%
The shape of the year continues to snake along with the seasonal pattern, suggesting the year-end rally is still largely intact.
Elon Musk is once again taking on the establishment. He is now the richest person in the world and takes great pleasure in taunting his nemesis, including his new foes on Capitol Hill that have tried to make him all that is wrong with the United States.
Bernie Sanders took a shot this weekend with Musk, replying that he could sell more stock.
I’m still not sure what “fair share” is, as nobody has put a figure on it – but what’s being paid now is very unfair. This economy has been firing nicely, partly to low taxes and fewer regulations. The extra stimulus money was unnecessary and only added rocket fuel to the inflation crisis without changing anyone’s economic lot (except billionaires like Elon Musk).
The exchange did not help Tesla (TSLA) as the stock is trading down around 3% so far today and is down about 10% on the month.
We are adding to Materials in our Hotline Model Portfolio this morning.
It’s off to the races this morning as the rally continues. Treasury yields are up slightly and crypto is on the rise as well. WTI is taking a breather, down 1.37% and breaking below $80.