US stocks rallied again overnight with the Energy Sector up almost 5% driving the Dows +327 point gain. We feel the upside bounce by stocks is slowing maturing and the press/pundits will start to quote “sell in May & go away” over the coming weeks, certainly the most comfortable option for investors after the recent uncertainty around the banking crisis.
- No change, we continue to look for US stocks to push higher over the coming months albeit in a “3 steps forward 2 steps back” manner.
MM remains mildly bullish toward US stocks through April
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The moves by OPEC+ over the weekend are very real and in our opinion destined to be very supportive of both prices and the Energy Sector over the coming weeks/months. The 10 best performers in the S&P500 overnight were all energy stocks with Marathon Oil Corp and ConocoPhillips both surging over 9%.
- However, we believe that some consolidation is overdue following crude oils’ +20% surge over recent weeks.
MM is bullish crude medium-term targeting $US90/barrel
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