Now It’s Time for the Stock Market to Really Shine

NYSE: SPY | SPDR S&P 500 ETF Trust News, Ratings, and Charts

SPY – For the past few weeks, there’s been a persistent headwind in the S&P 500 (SPY) that was unfavorable for growth stocks, particularly small and mid-cap selections. This risk-off mood was also manifested in plunging long-term yields, underperformance in cyclical stocks, and some profit-taking in overextended stocks and sectors. Fortunately, this headwind has tamped down, enabling some of our growth stocks to really shine. It’s not like small and mid-cap stocks have started outperforming as we would ideally like to see…but they’re no longer underperforming in the concerning way that they were for the last few weeks. I believe the major catalyst has been earnings season as small-caps and mid-caps have outperformed expectations. In this week’s commentary, I will do a recap of earnings season. Read on below to find out more….

(Please enjoy this updated version of my weekly commentary published August 04, 2021 from the POWR Growth newsletter).

As usual, let’s start with the one-month, hourly chart. which shows that the market has been drifting higher out of its recent consolidation over the past couple of weeks:

I’m expecting that this low-volume, low-volatility drift higher could continue for a couple more weeks.

Let me Explain My Reasoning…

Last week, we discussed the tug of war between bullish and bearish forces. On the bullish side, we have earnings growth and low rates. On the bearish side, we have an overbought and overbullish market with some threats like the Delta variant, inflation, and growth concerns.

These are valid concerns and have triggered market corrections. However, the bullish forces have overwhelmed these potential, bearish catalysts. Now following a superb earnings season, I think the window has closed for some time on the bears.

Why? In sum, the earnings picture has gotten even better with 85% of companies beating on revenue and 87% on earnings. We are seeing earnings estimates being hiked for the near and long-term. 2021 EPS estimates for the S&P 500 are being raised to $200+, while 2021 estimates are now above $220.

On top of this, economic data has come in at a solid pace but it isn’t so good that it would cause the Fed to accelerate its tapering and hiking timeline. So, it’s in the perfect sweet spot -enough to generate earnings growth not enough to put upwards pressure on rates.

And, the threats to the outlook have receded. Countries that experienced the Delta variant are already seeing cases decline, so the US should peak sometime in the next couple of weeks. Inflation readings continue to come in hot, but forward-looking measures have peaked and are dropping fast.

Final Thoughts: The market took some heavy blows over the past few weeks. In terms of the indices, there has been no, lasting damage. Of course, the story is different with a deeper look at the market and some of the subcomponents.

I’m happy that we emerged from this with little damage and are well-positioned to take advantage of the market’s risk-on environment.

What To Do Next?

The POWR Growth portfolio was launched in early April and is off to a fantastic start.

What is the secret to success?

The portfolio gets most of its fresh picks from the Top 10 Growth Stocks strategy which has stellar +46.42% annual returns.

If you would like to see the current portfolio of growth stocks, and be alerted to our next timely trades, then consider starting a 30 day trial by clicking the link below.

About POWR Growth newsletter & 30 Day Trial

All the Best!

Jaimini Desai
Chief Growth Strategist, StockNews
Editor, POWR Growth Newsletter


SPY shares were trading at $445.03 per share on Thursday afternoon, up $1.25 (+0.28%). Year-to-date, SPY has gained 19.81%, versus a % rise in the benchmark S&P 500 index during the same period.


About the Author: Jaimini Desai


Jaimini Desai has been a financial writer and reporter for nearly a decade. His goal is to help readers identify risks and opportunities in the markets. He is the Chief Growth Strategist for StockNews.com and the editor of the POWR Growth and POWR Stocks Under $10 newsletters. Learn more about Jaimini’s background, along with links to his most recent articles. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
SPYGet RatingGet RatingGet Rating
.INXGet RatingGet RatingGet Rating
DIAGet RatingGet RatingGet Rating
IWMGet RatingGet RatingGet Rating
QQQGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

REVISED: 2023 Stock Market Outlook

40 year investment veteran Steve Reitmeister shares his most complete and up to the minute analysis of what lies ahead for investors the rest of 2023. First a return of the nasty bear market with the S&P 500 (SPY) making news lows. Yet just at the darkest hour the new bull market will emerge ushering in tremendous gains to investors who time it right. Steve shares his trading plan along with top 7 picks to profit on the way to bear market bottom. Next he shares a plan to buy the market bottom with 2 top picks set to rally 100%+. Get the full story below....

:  |  News, Ratings, and Charts

5 Top Energy Stocks to Buy Right Now

Despite the recent plunge in oil prices, the reopening of the Chinese economy and tight supplies appear beneficial for the energy market. Given this backdrop, fundamentally strong energy stocks Marathon Petroleum (MPC), Valero Energy (VLO), PBF Energy (PBF), Unit Corp. (UNTC), and Epsilon Energy (EPSN) might be ideal buy-and-watch picks for your portfolio this year. Read on...

:  |  News, Ratings, and Charts

3 Stocks That Are Screaming Buys in March

The Fed will likely go ahead with a smaller rate hike next week due to the bank insolvencies. However, the market is expected to remain under pressure as recession possibilities rise. In this scenario, it could be wise for investors to buy Marathon Petroleum (MPC), Centene (CNC), and Boyd Gaming (BYD), given their strong fundamentals and solid growth prospects. Keep reading...

:  |  News, Ratings, and Charts

The No.1 Tech Stock to Buy in 2023

Leading digital communications technology company Cisco’s (CSCO) shares have been gaining in price despite the lingering macroeconomic issues. The stock should sustain its momentum supported by its solid fundamentals. Moreover, the company pays reliable dividends. So, CSCO could be the ideal stock to own in 2023. Read on…

:  |  News, Ratings, and Charts

3 Stocks That Are Screaming Buys in March

The Fed will likely go ahead with a smaller rate hike next week due to the bank insolvencies. However, the market is expected to remain under pressure as recession possibilities rise. In this scenario, it could be wise for investors to buy Marathon Petroleum (MPC), Centene (CNC), and Boyd Gaming (BYD), given their strong fundamentals and solid growth prospects. Keep reading...

Read More Stories

More SPDR S&P 500 ETF Trust (SPY) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All SPY News