As I had expected, the over-the-weekend-premarket futures market which indicated a strong sell-off, bottomed at the open and rallied the rest of the session. Some might attribute it to commentary by a Fed official. I just think that it was sloppy futures selling by hedge funds who extrapolated the disappointing jobs report into another recession. Boy was that a bad inbounds pass by the bears.
Thanks to Friday’s weak labor report, Fear of Fed was taken off the table, bonds rallied as did dividend stocks. Small cap stocks underperformed the market. It was likely a one-day event as larger cap stocks caught up on lost ground in the first quarter.
I only performed one meaningful client transaction during Monday’s session. That took place in our Restaurant & Food Chain Portfolio accounts. We booked profits in Agrium (AGU) and started positions in the evil Monsanto (MON). Hands down, Monsanto is the most hated company in the world. That it is so hated; is not for financial reasons but for social ones, by those who are against GMOs (genetically modified organisms).
Today should be a rather dull session. There are no newsworthy economic or earnings reports on the calendar. Earnings season will commence on Wednesday. I think we will go back to watching the Dollar and crude oil for direction for the day. Likely, by the end of the day, the markets will extend Monday’s gains but to a lesser extent. After all, following Monday’s exciting NCAA men’s basketball championship game, we could use a day of rest or celebration, depending on who you rooted for.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long MON — although positions can change at any time.
Scott Rothbort is the President & Founder of LakeView Asset Management, LLC, a registered investment advisor specializing in high net worth private wealth management. For more information on investing with LakeView Asset Management, LLC call us at 888-9LAKEVIEW or request more information by clicking on the contact button on the top right hand corner of the website.
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– Read Scott’s intra-day thoughts and comments on Scutify for which he is a co-founder of its parent company Wall Street All-Stars, LLC
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