Leading the day were financials as the group jumped higher leading the entire market higher. Utilities were the day’s biggest losers as the 10-year treasury note moved back above 2.4% today. Energy took a breather closing flat on the session after a solid 5-day return. Volume was up across the board as traders and investors alike continue to put money to work in this market. We have not seen huge gains this month, but it has been productive. We have had a great first quarter and it is due to our diligence with our signals along with our money management process. Of course, cutting losses is the cornerstone of our money management process. Without it we would not have the gains we have. Let’s have a solid finish to the first quarter!
Sentiment changed in the AAII sentiment survey as bears jumped back up to 37% while bulls fell to 30%. No big surprise as last week’s move more than like scared a few AAII respondents. NAAIM exposure index didn’t budge suggesting active managers forgot to by the dip. All kidding aside it is somewhat curious to see the active managers not increase their exposure to equities at all. In fact, bearish bets were increased week over week. Bullish bets increased, but that is to be expected after the market rebounded from last week’s stumble at the beginning of the week.
Another solid week so far and it will be nice to see Friday cap it off with solid price action. Volume will jump at month end rebalancing takes place. On Monday, we will see fresh new cash with 401k money hitting the books with the beginning of the month. Quarterly rebalancing occurs as well. Friday should be a fun Friday!
We hope you had a great March and first quarter. Subscribers have had a great start to the year. Get on board and take your trading to another level. Have a great weekend!
