This week markets were undecisive. On Thursday, talk about an increase in the corporate tax rate resulted in investors’ stamping their feet, shaking their fists, and jumping onto the market’s down elevator. An up day turned into a big loser. On Friday, as is often the case during bull markets, they changed their minds, jumped back on the up elevator, and clearly “bought the dip” producing a strong rally.

Next week has a lot of potential for increasing volatility. Fully 1/3 of companies will report on their 2021 1st Quarter earnings and outlook. With reports so far averaging 84% beating their earnings estimates, market participants are generally very upbeat with respect to next week’s earnings reports.

Additionally on the macro economic level, we have a FED meeting (with expectations of little change in direction) and proposals coming from the White House regarding new tax and spending plans. Stay tuned!

In terms of this week’s market condition, we used the high volatility settings to scan the conforming credit spreads. Premier Members can view the screening reports of conforming credit spreads, and others can join us to test-drive free for 30 days.