Stock Market Today: Rebound with Temporary Cooldown of Commodities

March 9, 2022, 3:06 pm EST

Rebound with Temporary Cooldown of Commodities

Temporary cooldown of commodities (Brent crude -13%, WTI crude -12%, Gas -10%, Wheat -7%) gave beaten-down stocks a chance to rebound as shown from S&P 500::

  • Airlines: UAL, AAL
  • Cruises: NCLH, CCL
  • Travel / Hotels: BKNG, WYNN, MGM
  • Retailers: PVH, TPR

The financial and technology sectors also participated in the rebound rally. To justify the quality of the rebound, we will look at their volume which means the momentum power. If today’s volume is below the average, then it is simply a weak rebound. More sell-off could come again at the end of the rebound. Although today’s price action looks significant, we are not optimistic unless there is strong volume behind it. 

Russia-Ukraine condition is still unknown so commodity prices could spike up again that we need to keep monitoring closely.

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