Bessent Saves the Market Again
At the end of another positive day for stocks, it's clear Treasury Secretary Scott Bessent is preventing larger pullbacks.
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After the great action last week, the market was due for a rest on Monday, but it only lasted for about four hours. Stocks opened strongly, faded until early afternoon, and then ran back up into the close. It was very calm and steady dip, buying on a shallow pullback.
At the end of the day, breadth was positive, with 5,700 gainers to 4,000 decliners and around 175 stocks hitting new 12-month highs.
The Nasdaq 100 QQQ, Magnificent Seven MAGS, and technology stocks in general lagged, while the Russell 2000 IWM and the DJIA led to the upside. It wasn’t as good as last week, but for a market that was a bit overbought, it was quite healthy.
What is preventing a bigger pullback is continued hope that some progress will be announced soon on trade and tariffs. Treasury Secretary Bessent has been a calming influence on the market and continues to indicate that negotiations are underway and the framework for deals with many countries is coming.
While we wait, there is a slew of economic reports hitting this week. The big reports are Meta META and Microsoft MSFT on Wednesday and Apple AAPL and Amazon AMZN on Thursday, but there are hundreds of other reports as well.
In addition, there are several very important economic reports coming, starting with Consumer Confidence on Tuesday morning, PCE inflation on Wednesday and March jobs news on Friday.
Technical conditions continue to look good, but the bears are anticipating some negative news flow and recession concerns that will kill the action. If that doesn’t happen, then short squeezes and FOMO will kick in and keep the positive momentum running. The trend is your friend until it ends.
Have a good evening. I’ll see you tomorrow.
At the time of publication, DePorre had no positions in any securities mentioned.
