Momemtum Monday – Panic And FOMO Together at Last

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Happy Monday everyone.

Before I get started, Stocktwits now has a fantastic Saturday morning (free) email called the ‘Stocktwits Top 25‘. The Stocktwits Top 25 reports the top 25 performing stocks in the S&P 500, Nasdaq 100, and Russell 2000 year to date (YTD) and tracks their performances over time. It is a great compliment to our Momentum Monday show.

Onwards…

This is a short investing week as the markets are closed Friday.

As always on Momentum Monday, Ivanhoff and I tour the markets discussing the stocks and sectors that are moving the most.

Here is this weeks episode.

Ivanhoff sums up the tape with:

The software continues to be the main game in town as the number of new covid cases in the U.S. has started to climb quickly again. Obviously, any company that works on a vaccine or offers diagnostic tests and protective gear is also in good shape. Gold and gold miners are consolidating near their 52-week highs and are looking constructively. The stocks of the rest of the sectors are slowly starting to roll down. The number of distribution days in the major stock indexes has increased significantly in the past couple of weeks, so it would not be a big surprise of even the Nasdaq 100 tests its 50-day moving average at some point in the next week or so. Dip buyers are still active and would welcome such pullback as a buying opportunity.

I read the tape as a mix of panic in land based businesses and FOMO in select biotech and cloud based businesses.

I will end with a few visuals that show the intense fear and greed happening at the same moment…

Hear is the greed:

and…

and here is the fear:

I plan on laying low this week to see who wins the battle of the S&P 500 200 day moving average.

The social networks are a particular battleground this week as Twitter and Facebook see huge brands pull advertising because of their idiotic terms of use bibles. As of this morning both stocks are down a quick 10 percent since Friday. The 200 day moving average on Facebook is at $198, a price that should see extra support.

Have a great week.

Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security. For full disclosures, click here.