Looking Good, Market…Feeling Good, Chris!

Today ends the first market week of April. It was a strong week that traded well into the close at 2892.74 for the S&P. Where it goes from here will be interesting.

The financials and Chinese stocks performed exceptionally well this week, so I’ve got my eye on them. My position in Baidu is doing well, but I think it may just be getting started. Looking at the long term chart makes me think there are some real price gains ahead. Of course, this is predicated on Chinese/US trade relations continuing to move forward.

Quick Thoughts On Sectors:

  • S&P 500 (SPY) 2.16%
  • Financials (XLF) 3.46%
  • China (FXI) 3.57%
  • Energy (XLE) 2.25%
  • Healthcare (XLV) 0.27%
  • Tech (XLK) 2.59%
  • Utilities (XLU) -0.12%
  • Consumer Staples (XLP) -0.93%

After doing a quick look at the weekly performance of several ETFs (SPY, XLF, FXI, XLE, XLV, XLK, XLU, XLP), the only ones I see lagging this week are Utilities and Consumer Staples. I think this shows some sector rotation from stable dividend payers into growth stocks because of the strong market. The defensive plays took it on the chin a bit over the last few days. I see this as encouraging because it underscores the strength of equities in a continuing bull run. I personally am still somewhat cautious, although I do think I may have been early on my lighten up call. The real test of whether there’s more room to run will be the earnings coming over the next month or so. I’ll be keeping my eyes on top and bottom lines and listening to the commentary to look for opportunities or for warnings.

1 Comment

  1. Kevin Gilbert

    Interesting analysis, Chris. Thanks for sharing.

    Reply

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