With the March Quarter Behind Us, It’s April Earnings and Volatility Ahead

After a turbulent start to the year and a robust March stock market, the S&P 500 closed the March quarter up less than 1 percent.
Yellen’s dovish comments helped catapult the S&P 500 to 17.1x forward earnings, head and shoulders above 5-year and 10-year average forward 12-month P/E ratios of 14.4x and the prior 14.2x, respectively.
The potential risk-to- reward to be had near term in the stock market is far more skewed to the risk side, and this has us making defensive moves on the Tematica Select List as well as the Tematica Pro Select List.
The coming week is essentially “No-Man’s Land” ahead of Alcoa’s ([stock_quote symbol=”AA”]) earnings on April 11^th, the traditional start to corporate reporting.
Data points to watch include ISM Services Index and the Fed’s March FOMC statement as well as thematic earnings from Darden Restaurants ([stock_quote symbol=”DRI”]), Walgreen Boots ([stock_quote symbol=”WBA”]), Monsanto ([stock_quote symbol=”MON”]), Constellation Brands ([stock_quote symbol=”STZ”]) and others.