Happy Monday everyone…
Before I get started mark your calendars for this Saturday’s Stocktwits/AllStarCharts Virtual Chart Summit. It is FREE to register at the link enclosed. I will be doing a few special guest interviews covering markets and crypto.
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Another great week for those that own stocks and crypto.
The governments around the world have turned cash into trash (I still love it) and risk remains on. Investors and traders (including me) have continued to add risk on the edges with more crypto.
Facebook is breaking out because it remains relatively cheap and VR is finally showing real signs of life. I know because Tom, Gary and I all ordered our first pair and we are old farts (I own the stock).
Here is this weeks Momentum Monday episode with Ivanhoff and I discussing all of the above and some fresh ideas. I have embedded the episode here on my blog below:
Here are Ivanhoff’s thoughts:
Bull markets digest gains through sector rotations. Small caps and the so-called “back-to-normal” stocks have led the market higher since the first Covid vaccine was approved last November. In the meantime, mega and large cap tech stocks have been lagging for the most part. This changed last week. Maybe it is the approaching new earnings season and the realization that no interest rates spike is going to change the fact that those stocks are highly efficient cash-generating machines with clearly sustainable competitive advantage. Rare assets rise during periods of rising inflation expectations: AAPL, AMZN, FB, GOOGL, MSFT, NVDA, NFLX.
MRNA and BNTX – the mRNA vaccine stocks have woken up. Both obviously have remarkable earnings and sales growth but for the past few months, their products have been considered generic – with no longer-term edge. Just a couple of vaccines among many other vaccines that are likely to get approved in the next year or so. With AstraZeneca vaccine having troubles getting people’s trust in Europe and Janssen getting some bad press in the U.S., Moderna and Pfizer/Biontech have become a desired brand – I don’t know if it is actually true but they are currently widely perceived as safer and if not safer, then at least much more effective than their competitors. This is starting to be reflected in their prices.
Obviously, semiconductor stocks are still the leaders – just look at the tight-range consolidation most of them are exhibiting after their big breakouts two weeks ago. They might need more time to digest but many are acting in a constructive manner – MU, TSEM, TSM, AMAT, HIMX, QRVO, SWKS, KLAC, KLIC, LRCX, NVDA, etc.
Some more links to go along with Momentum Monday…
Charlie’s 5 chart Friday.
Charlie points out the one big worry I have right now is the desperate reach for yield that investors are chasing:
Historically, on the other side of these chases come spikes. These spikes are hard to time of course.
Stocktwits weekly 25 for the big indexes. I start here each Saturday to see where the fresh momentum lies.
Nikita is keeping up with her weekly SPAC report which has become an important sector of the market to watch.
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.