Rates are so low that this market has decided to embrace anything giving you 4%, and it looks like stands are being made at that level and above. Also the sense of the long decline in oil is now over, as this level has held through a lot of negatives and the inability of Ukraine to be solved is now leading people to think Russia will play the oil weapon.
I see three things to watch if we are going to get any trade-able bottom for some of this market:
- Workday (WDAY) had a spectacular quarter and it is not economically sensitive, so that could be the best barometer for high growth.
- BP (BP) caught a big downgrade today; but it yields 4.8% and is a terrific way to monitor both rates and oil.
- Finally, watch the higher yielding food and drug stocks. My friend and writing partner Matt Horween has noticed that B&G Foods (BGS) is holding, and that's been an underperformer. I speculate that it could be for sale but that 4% yield has people excited.
Those should be front and center on your screen.
Twitter's (TWTR) business must have taken a quantum leap up of late. Truly remarkable stock here.