“Metal Health will drive you mad” Further strength likely in Metals

Despite Friday’s drawdown, US Equity indices are higher on the week with the NASDAQ 100 having enjoyed the best week of the year.  Stocks like $AAPL broke out to new 2023 highs, while other important highly weighted $SPX and $QQQ constituents like $MSFT and $META hit new multi-month highs.

While sectors like Financials and Energy have sold off sharply in recent weeks, both of these groups are nearing attractive support and are thought to likely stabilize and bounce post FOMC next week.  Healthcare also has been starting to show some minor strength after recent weakness, and this group looks attractive.

Interestingly enough, there continues to be a very vocal debate on earnings revisions and valuation and the markets reluctance to sell off down to levels that would satisfy many of these Fundamental “bears.”

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