It’s hard to believe that we’re beginning the 2nd quarter of 2021. An incredible journey for the market already this year. 

I want to re-state a comment I made yesterday: I had said that opportunities in the core momentum leadership categories might not surface until later in the 2nd quarter or later, but… 

Just 2 sessions left in the 1st quarter of 2021, and the Dow is in the lead by a big margin compared to the NASDAQ. 

March has proven to be a tricky month for stocks, especially when monitoring the day-to-day movements and trying to anticipate the market’s general course. 

It’s been another week of volatility and I think that translates to reactivity with investors reacting to day-to-day events; market likely in a trading range over the short run going into the earnings season. 

Yesterday’s rally failure in the Dow might have been a bit more ominous technically, were it not for the calendar as we’re nearing the end of the 1st quarter. 

It was about a year ago that the Dow had fallen about 20% from its highs, for some that meant that the market was in a bearish trend; but it was soon after that the market pivoted and never really looked back. 

In the last several sessions we’re seeing the seesaw rotation between cyclicals, financials, and the core momentum areas (consumer discretionary, healthcare and technology). 

I think it’s quite constructive that we’ve had a pullback in a number of momentum areas. 

As we’re nearing the end of the quarter, we’re seeing some portfolio shuffling in anticipation of 1st quarter earnings season.