This Week on Wall Street - Week of April 3rd

We are seeing stronger readings as we cap off the first quarter of 2023.

Market Commentary

We are seeing stronger readings as we cap off the first quarter of 2023. Large Caps and Foreign Developed markets are grading out the best. Growth still has a slight edge over value.

Last night OPEC+ made a surprise plan to cut oil production. As the banking crisis mania begins to peak, the oil story enters the picture which will likely stoke greater fears of higher inflation and decrease bets on a quicker Fed pivot. Oil surged over 8% on the news.

The index had a strong push higher to close the quarter and is back to the key February levels of resistance near 4,100. Over the last 3 to 4 months, bulls have mostly been in control as markets have been making higher highs and higher lows.

Among sectors, we are still seeing strength in Technology. Materials and Utilities have graded out strongly this week as well. Picking names with relative strength within sectors has remained the dominant and most effective strategy.


What is Newton?

r Newton model attempts to determine the highest probability of future price direction by using advanced algorithmic and high-order mathematical techniques on the current market environment to identify trends in underlying security prices. The Newton model scores securities over multiple time periods on a scale of 0-20 with 0 being the worst and 20 being the best possible score. Trend & level both matter.


Economic Releases This Week

Monday: St. Louis Fed President Bullard Speaks, ISM Manufacturing, Construction Spending

Tuesday: Factory Orders, Job Openings, Cleveland Fed Mester Speaks

Wednesday: ADP Employment, US Trade Balance, ISM Services

Thursday: Initial & Continuing Jobless Claims

Friday: Jobs Report, Consumer Credit


Technical trading models are mathematically driven based upon historical data and trends of domestic and foreign market trading activity, including various industry and sector trading statistics within such markets. Technical trading models, through mathematical algorithms, attempt to identify when markets are likely to increase or decrease and identify appropriate entry and exit points. The primary risk of technical trading models is that historical trends and past performance cannot predict future trends and there is no assurance that the mathematical algorithms employed are designed properly, updated with new data, and can accurately predict future market, industry and sector performance.