More of the Same? – Nothing ever seems to be good enough these days. Today’s tape has been messy and volatile especially after a non-farm payrolls figure that caught many off guard. And it was good! But this is where Powell’s words yesterday were a concern, choosing to provide nothing in the way of a Fed plan were yields to rise too quicky. The promising job news had equities going better early on but the 10-year again flirting with the 1.60 level stemmed that move. Yields have eased as the day has progressed and equities have recaptured their footing some but the theme we’ve seen throughout the week is the same, namely tech lagging although at least it’s gone green on the day. Tesla has grabbed much of the attention, -14% on the week but Apple has now hit a 3m relative low. A close below that could have it under-performing by another 20%. Energy names the best as yesterday’s OPEC+ surprise continues to reverberate while defensives have more of a bid than we’ve seen of late. The violent nature of the week’s sell-off hasn’t resulted in the tidy +Value/-Growth we’ve become accustomed to. Rampant bullishness in terms of equity allocation by sell-side strategists as exhibited below hasn’t been this high in nearly 10 years and the last time it was triggered, stocks were a fair bit lower 12 months later.
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