Morning Comment: Wil the end of the quarter bring an end to some artificial demand for stocks?

• Good day for the stock market yesterday. (Better “internals”)
• However, the yen continues to bounce…and the end of the quarter could signal an end to some of the effects of “positive gamma.”
• People are waking up to the fact that the sanctions on Russia are not going to be removed any time soon.
• As investors refocus on fundamentals, they’ll realize the headwinds from January are stronger today.

As we move from the first quarter into the second quarter, the stock market stands at a key juncture. It has broken an important resistance level, but it needs to hold above that level. There is no guarantee that this rally will indeed "hold"....because two key issues that has provided some extra "artificial demand" in recent weeks could/should fade going forward. When you combine this with the reality of what's really going on in Eastern Europe and the fundamental backdrop we face today, the odds are higher than most people realize that the current rally is running on fumes.

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Matthew J. Maley

Chief Market Strategist

Miller Tabak + Co., LLC

Founder, The Maley Report

TheMaleyReport.com

275 Grove St. Suite 2-400

Newton, MA 02466

617-663-5381

mmaley@millertabak.com

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