Good morning,
Below are the latest 3 From The MMP. The Monday Morning Playbook (MMP) is the flagship publication of Beat the Bench and now includes 2 ETF models, in addition to more charts, analysis, and actionable takeaways.
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S&P 500 suffers worst week since March, still above August highs
The S&P 500 fell 1.4% last week but did manage to hold above its August highs (4325) for the second consecutive weekly close above. The most bullish scenario would be continuing to hold, but without our indicators oversold or breadth washed out, that may not be realistic. However, 4200 is the more important level and should provide strong support on a deeper pullback.
*A special thanks to The Chart Report for featuring this chart as their Chart of the Day on Friday.
Fed hawkishness behind it? 2-year pushing back toward 4.8%
It was Fedspeak galore last week and clearly, the market has taken it hawkishly. The 2-year yield is pushing up toward cycle highs, but both RSI-14 and the MACD show slowing momentum. Combine that with “The Flippening” and I think we’re likely near the end of this move.
Nat gas continues to bottom, but the stocks haven’t noticed
The spot price of natural gas broke out to multi-month highs last Friday, continuing to form a bottoming pattern at long-time support. However, the strength hasn’t translated to natural gas-focused stocks, which are rolling over below a downward-sloping 200-DMA.
That’s it for this week, thanks for reading! If you like my work, please consider upgrading to a paid membership and tell your friends about 3 From The MMP.
Scott
Scott Brown, CMT
Founder and Chief Investment Strategist, Beat The Bench LLC