Market opens lower after a stellar start to March. All 3 major indexes jumped over 2%, marking the best monthly start in over 3 years. Importantly, the rally yesterday was broad based, and our conviction is growing that the correction has nearly run its course and will lead to a much better H2 for stocks. The DOW and S&P are still down roughly 3% on the year, but it’s a far cry from down 10%, and 15% from the highs last Spring. Interest rates jumped higher, showing money has flowed out of bonds and into stocks for the first time this year. That’s a key indicator. The 10-Year Treasury yield is back to 1.84%, after a visit to 1.5%. Crude jumped over $34 yesterday, and is consolidating the strength in early trading. Global Markets were mixed overnight, but China was strong, despite a credit downgrade. Indications are the Fed is going to sit back for a while and wait on rate hikes. Foreign central banks are continuing to provide stimulus aggressively. Stocks are liking it. Super Tuesday showed that it is very likely we’re looking at a Hillary vs Trump election in November.
