Going Streaking… A good ole’ fashioned risk-on session has the S&P knocking on the door of a new all-time high, as well as its first string of 8 consecutive green days for just the fifth time in 10 years. Rotation is again the word of the day, with Cyclicals/Value powering higher and Tech/Defensives making up the bottom of the sector table on word of Russia’s “approved” Covid vaccine. Some signs of caution are showing through the early morning exuberance however, as some of the highest-flying Travel & Leisure names have been reined in and Software/Media have recovered to help the Nasdaq muscle its way back towards positive territory as it tries to avoid its first 3-day losing streak since March; perhaps some hesitation is warranted given the questionable nature of the vaccine news and the fact that Trump’s proposed capital gains taxes remain up in the air. Still, the 10-year Treasury yield has remained at multi-day highs, receiving an extra boost from warmer than expected PPI data. Gold is unable to shake its weakness, with profit taking instinct overshadowing the early signs of inflation.
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