Stock Market Review (Long Bias)

Last Friday stocks closed the week higher despite some mediocre economic data. At the end of the day, the Dow was up 139 points, NASDAQ was plus 58 points, and the S&P climbed 13 points. Market breadth was clearly tilted to the upside, with advancing issues easily outpacing decliners.

I think last week was a notable week for bulls, with investors looking optimistic with respect to trade issues. It is reminiscent of the Brexit fatigue we saw a couple years back where everyone became indifferent to the negative news and given the gravity of the outcome for many businesses.

Otherwise, last week's business data provided further indications of a general slowing. The Fed published figures that showed February Industrial Production was only up .1%, whereas a .4% gain had been the expectation. Additionally, it seems that the auto sector did not recover as hoped. Meanwhile, capacity utilization edged lower. Despite this, consumer sentiment rose.

Today’s market action saw strength in tech names, such as Apple. Apple put out an ad that emphasized its commitment to consumer privacy, perhaps partly to get ahead of any government regulations that could be forthcoming. Facebook will likely be more exposed as Zuckerburg tried to sell the public on it’s “vision”. FB shares took a hit as well

Helping the Dow Industrials was a turnaround in Boeing stock. There was speculation that the beleaguered aerospace giant might have a software upgrade for its 737 MAX jet approved in a few weeks (supposedly 10 days).

Overall, this week ended bullish. Earnings season is likely the next major focal point for the market but still about a month away. So with the negative sentiment possibly burning off the bullish run may have legs as investors ignore threats and chase opportunities.

//Profit from Momentum