As a reminder, Marketsmith (by Investor’s Business Daily) is now a sponsor of the weekly show. All the charts you have been seeing in the videos and will continue to see are from Marketsmith. They are offering my readers a three week trial for $19.95. Click this link if you would like to try it out.
Happy Monday everyone.
This weekend felt like a work week as crypto was in plunge mode.
In 2021 I have a 24/7/365 portfolio to look at as crypto has grown in size. Everyone seems to be blsming Elon Musk for a selloff in Bitcoin, but as Michael Batnick reminds us, Bitcoin crashes all the time.
As always, Ivanhoff and I got together to make Momentum Monday. The only real pain right now is in growth stocks. Not to scare anyone, but the last time turned down like this, it was just the beginning. Ryan has a great chart on the subject. The rest of the market sectors have a lot of leadership.
You can watch or listen to the show right here. I have embedded it below.
Here is Ivanhoff’s quick take:
CDC announced new guidelines last Thursday. Fully vaccinated people don’t have to wear masks outside or inside and can basically go back to their life before the pandemic. This woke the so-called back-to-normal stocks up. Retailers ETF was up 4% on Friday. Airlines, cruise lines, hotels, car rentals, entertainment stocks were on fire. So were oil stocks, which are at the intersection of back to normal and rising inflation expectations. How long is this theme going to last? It could be a few days or a few weeks. A lot has already been priced in but even the most optimistic among us didn’t believe that we can go back to normal so soon. This is why I think this theme has room to run and anything related to travel and leisure is likely to outperform in the near-term.
In the meantime, SPY tested its 50-day moving average and as it usually happens, the first test led to a quick bounce. QQQ and IWM are still lagging. Both are still below their 20 and 50dma. There’s a good chance of more choppiness ahead. All we can do is focus on setups and find themes that are currently in favor.
Here is this weeks Stocktwits 25 lists
Here is Nikita’s quick weekly SPAC wrap.
The hot take is now that SPAC’s are dead. It’s a bad take. SPAC’s are a feature not a bug. Investors were sloppy and as I was sayng on this blog for months leading up to the February peak – here I explained it last August -supply would swamp the market. I do not know how long it will take to eat through the supply, but it will eventually happen and good deals will sneak up on everyone.
Last but not least, Charlie has his 7 chart Sunday piece.
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.