Small cap stocks ripped higher after falling for six straight days leading the entire market higher to close out March and the first quarter. Volume was higher for the day. However, the end of the day volume from portfolios rebalancing at month’s end was the catalyst for volume. We see this every month. For the most part volume ran lower for the entire session. There are still some question marks regarding this stock market that will need to be flushed out. Today was a decent start as only the NASDAQ was unable to close above Friday’s high. DIA is still the best out of the bunch with SPY not too far behind. We’ll keep moving and shaking along with price, but we aren’t out of the woods yet.
Four key stocks we are looking at did not have the best time today: PCLN, GOOG, FB, and TSLA. These four big boys have been stellar over the past few months. However, there are quite a few cracks. Today we see these stocks having a tough time in a good market day. Ideally, it would have been nice to see these guys push much higher and lead. Sure, it could simply be rotation into new names like MSFT and ORCL. Is it enough though? It is wise to keep an eye on these movers as they are likely to be a great indicator for this market going forward.
Inflation is certainly beginning to show its ugly head. Crude oil is above par and continues to look strong above $100. Americans aren’t driving not nearly as much, but they are still buying food. CORN, DBA, MOO are all moving higher and by quite a lot. We did post the CRB Food index awhile back showing the prices for food items has moved much higher. The index is up 19% year to date. As wages continue to be stagnant how can those living pay check to pay check survive? Eat less? How this translates to the stock market is anyone’s guess. Stick with price and leave the guess work to “gurus.”
Baseball’s opening day is here. A great sign those of you who do not live on the great island of Maui. It is always paradise on the island of Maui.
