View from 5th Avenue

The View at Two – 8th April, 2021

“Hello Friends”… Jim Nantz’s familiar greeting, the Masters Tournament theme song, birds chirping in the background: the relaxing sounds of a nice Sunday afternoon golf nap are upon us. Markets have continued on in a similarly sleepy fashion again today in what’s been an overall quiet week, but have US indices continued to inch higher as some comments from Powell forced traders to take one eye of the leaderboard momentarily. Of course his message is hardly different from what we’ve heard a thousand times already this year (“patience, patience, patience”) but like watching the Masters, sometimes its soothing just to hear it all again. With “lower for longer” top of mind the FAAMG gang is continuing its rebound tour, this time with Tesla in tow (NYFANG +1.1%) to drive the Autos sector higher as well. The usual rotation indicators of Banks / Energy are both among the laggards as Treasury yields and Crude give up some ground, but the concentrated Telcos is worst as Lumen (LUMN -3.5%0 trades lower after hosting its Analyst Day yesterday. With Q1 earnings on tap next week and more companies expected to actually provide guidance this go-around, it makes sense the market remains in a bit of a holding pattern for now. But with indices hovering near ATHs and the % of Bulls at its highest since 2018, things could be setting up for a dramatic “show me, don’t tell me” moment coming soon…

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