The market is treading water with breadth running slightly positive as it watches to see if Jerome Powell says anything surprising. So far, his tone has been mostly dovish, with some comments about how interest rates will likely stay 'low' for quite a while, but the market seems to be looking for something negative to hit.
The FATMAAN names are mostly negative, banks are down slightly, oil and energy are higher, growth names are losing steam, biotechnology is back to negative, and small-caps are hitting intraday lows. It isn't terrible action, but buyers seem to lack confidence.
I have cash I want to put to work and a shopping list, but I'm resisting the urge to do much right now. I suspect we are going to see some better entry points develop as we head into earnings for many of the stocks I'm watching.
One new buy I added to LendingClub (LC) . LC has been lumped in with high P/E FinTech when it really should be lumped in with banks and other financials that have more reasonable P/Es. LC is trading with a forward P/E on 2022 earnings of about 14. Last quarter it had 253% revenue growth and a big jump in EPS to $0.75. I suspect they will beat again this quarter, and I'll be looking to add to my position.
