12Apr10:15 amEST

We've Got a Case of the Mondays

Despite trimming part of my long exposure late-last week, I am not thrilled with this morning's price action thus far. An aggressive sell program off the open in small caps and tech stocks, especially, compounded by further weakness in materials is throwing cold water on a bunch of setups we had been eyeing. To be sure, all is not lost from the bull perspective.

However, as the bullish seasonal window gets smaller, it is likely correct to view weakness with a more skeptical eye as we head towards the infamous "sell in May" period. While "Sell in May," of course, is far from a guarantee, this year's May coincides with a delayed Tax Day and raises the specter of investors locking in capital gains from the March 2020 lows to 1) Pay taxes, 2) Spend the money on summer vacations 3) Spend the money in the real economy elsewhere. 

But back to here and now: Notable strength in TSLA (diverging from red ARKK) as it tries to clear $700 upside for more relief, and other names like CWH and UBER are intriguing from the long side. However, if the indices weaken further today, and small caps in the IWM lose $220 decisively I suspect it will be for naught.

Thus, bulls are under the gun once again to come up with another magical stick save into a dreary early Monday morning. 

Weekend Overview and Analysi... You know, Sir, It's a Funny ...


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