S&P Has Volatile Week Driven by Headlines, Bullish Thesis Remains as Intact as Ever

Summary

- S&P 500 closes at 4,166.45 down from 4,274.44. Losses concentrated in reflationary names.

- Quadruple witching expiration and FOMC meeting created volatility and uncertainty.

- We explain how we want you to use our research. Read the river like Mark Twain does.

- Despite the headwinds, hyperbole, and drama this week we remain FIRMLY bullish on stocks. Energy remains our favorite sector. We upgraded FAANG last week.

The Sun means that we are going to have wind tomorrow; that floating log means that the river is rising, small thanks to it; that slanting mark on the water refers to a bluff reef which is going to kill somebody’s’ steamboat one of these nights, if it keeps on stretching out like that; those tumbling ‘boils’ show a dissolving bar and a changing channel there; the lines and circles in slick water over yonder are a warning that troublesome place is shoaling up dangerously.” -Mark Twain, Two Ways of Looking at a River

The S&P 500 closed about 1.3% on the day Friday at 4,166.45 down from 4,247.44. It was a hectic week by many measures and the market had to face some high-risk headwinds. The re-opening trade and Epicenter sectors were hit hard as the market worked to process the movement of rates, a process certainly not...

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