Materials sector raised to Overweight as commodity rally gains momentum

I continue to see the US stock market as being attractive, technically speaking, and do not feel sufficient risk is there to warrant a selloff at this time. While price action has been a bit more subdued in recent weeks following momentum gauges having gotten overbought, there remain precious little other evidence with regards to frothy speculation to excessive valuation measures that would warrant a major selloff.  Rallies up to SPX-5350-5400 look likely into mid-April before a consolidation gets underway. Both Treasury yields and US Dollar should be starting to roll over.

SPX‘s back to back quarters of double digit gains has sparked a rally which seems to grow broader each week.  As discussed last week, Q2 2024 represented the 11th best 1st Quarter since 1950. 

While many investors remain understandably focused on Technology stocks, it’s been Energy and Materials which have “stolen the thunder” over the past month.

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