Thursday’s Stock Market Price Action Says Stocks Want To Go Higher

Summary

The S&P 500 ETF reversed a sharp early decline, signaling bullish sentiment and potential for a sustained rally as markets discount recent macro risks.
March’s strong jobs report, with 178,000 jobs added and 3.5% wage growth, supports the thesis that stagflation fears are overblown and economic growth persists.
Earnings estimates for Q1 remain robust, with forecasts up to 17%, suggesting stocks are undervalued and P/E multiples could re-rate higher from current levels.
I remain hedged via SQQQ but selectively added to ATI, HWM, CRS, DASH, and UBER, favoring aerospace/defense and internet services while prioritizing cash for potential retests of recent lows.
This idea was discussed in more depth with members of my private investing community, Group Mind Investing. Learn More »

Side view of a man climbing a ladder — Ljupco/iStock via Getty Images

Thursday’s opening for stocks started from the pre-market, were way down, and we could have easily tested the recent lows and stayed there. Instead, it reversed direction. Normally, market commentators will come up with a ready explanation of the market’s resilience, though

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