Fernandez: This market is changing day to day based on headlines

• Market is 'mercurial' with sudden mood changes and high volatility (VIX and MOVE indices).
• Recommends a tactical and defensive portfolio, favoring companies with low P/E, good cash flows, and upward trends.
• Highlights financials, specifically regional banks like PNC, as a defensive area due to strong revenue growth and improving efficiency ratios.
• Identifies potential headwinds including government shutdown, sticky inflation (super core CPI at 3.3% YoY), policy initiatives, and labor market concerns.

Victoria Fernandez describes the current market as 'mercurial' due to day-to-day volatility driven by headlines and economic data. She recommends a tactical and defensive approach, focusing on companies with strong fundamentals and good cash flow, particularly in financials and industrials. Key concerns include sticky inflation, potential government shutdowns, and labor market issues.