Weekend Market Report-5/22/22

Dow: +8.77…
Nasdaq: -33.88… S&P: +0.57…

The S&P 500 (+0.01%) closed fractionally higher on Friday, successfully digging itself out of bear market territory from earlier in the session, which is typically defined as a 20% decline from a recent high. The Dow (+0.03%), Nasdaq (-0.3%), and Russell 2000 (-0.2%) also closed on a better note.

Early on, risk sentiment was pressured by a failed rebound effort (the S&P 500 was down 3.4% from its intraday high to its intraday low), and by growth concerns stemming from persistent inflation and supply chain issues. The early gains were largely sentiment-driven amid a belief that the market was overdue for a bounce and news that China cut its 5-year prime loan rate by 15 basis points to 4.45%.

All 11 S&P 500 sectors were trading lower, but a nice rebound transpired in the last hour of action with no specific news to account for the rally. Six of the 11 S&P 500 sectors closed in positive territory.

If you have been waiting for what probably is the most accurate contrarian signal, BofA’s bull, and bear indicator, it is now in buy territory.

Nothing really looks enticing, but I still maintain that energy looks best. It has volatile days, but net-net, dip buyers usually show up.

If there was ever a week to turn off the Cartoon Network (CNBC), it’s this week. All the charlatans meet in Davos to be self-important and spew opinions. The G-5′ s will bring them in to talk about the climate crisis.


Still watching things set up but the following names look decent.



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