YWR: Killer Charts

The S&P 500 is whipsawing us to death, but I wanted to zoom out to show the big picture. Earnings so far have been in a slow downtrend, valuations are high and the yield on doing nothing (cash) is rising. That’s a tough fight.

The S&P can thrash around, but unless the EPS can get some upward momentum the broader index isn't going anywhere and might even go down on valuation concerns (ex-growth at 18x?).

12 month forward EPS has flatlined.

Estimate revisions continue to decline, albeit gradually.

The S&P would be more reasonable on a 2023 P/E of 15x, or $3,300.

Let’s get into two interesting sectors.

In the March 8th Killer Charts we flagged two observations.

First, the massive HF overweight in Healthcare looked like a potential train wreck.

Second, it might be an interesting time to be a utilities analyst.

Interestingly, that has been the case.