Seeking Alpha

Weekly Market Notes - March 4, 2019

|
Includes: DDM, DIA, DOG, DXD, EEH, EPS, EQL, FEX, FWDD, HUSV, IVV, IWL, IWM, JHML, JKD, OTPIX, PSQ, QID, QLD, QQEW, QQQ, QQQE, QQXT, RSP, RWM, RYARX, RYRSX, SCAP, SCHX, SDOW, SDS, SFLA, SH, SMLL, SPDN, SPLX, SPUU, SPXE, SPXL, SPXN, SPXS, SPXT, SPXU, SPXV, SPY, SQQQ, SRTY, SSO, SYE, TNA, TQQQ, TWM, TZA, UDOW, UDPIX, UPRO, URTY, UWM, VFINX, VOO, VTWO, VV
by: Robert W. Baird & Co.
Summary

All major market indices are up 11% for the year. At this juncture a consolidation phase is likely in order.

We recommend investors focus on sectors with strongest relative strength: utilities and REITs as defensive sectors; industrials, which could benefit from positive trade talks with China, and consumer discretionary.

Equity sentiment has shifted from excessive pessimism in December to too much optimism in late February.

From a contrary standpoint, thisargues for a short-term pause in the stock market,as equities digest their recent robust gains.