Momentum Monday – Rotation Rotation Rotation is The New Location Location Location

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Happy Monday everyone.

Not much has changed in the last week.

Tech leaders are correcting and the money is flowing into other stocks and markets…not out of the market.

The promise of low interest rates and money printing has most people focused on being in the markets.

As always, to kick off Momentum Monday’s, Ivanhoff and I tour the markets for what we see and like and are thinking. You can watch/listen right here.

Around the world, Denmark, Sweden, Switzerland, Taiwan and Japan are at all-time highs.

SPACS and IPOs remain the rage. Gambling stocks are leading the market higher ($PENN and $DKNG) while margin rates have never been lower to gamble with your leveraged savings…just because you can does not mean you should!

Other interesting market developments include…

The value over growth outperformance so far in September is the widest since 2008.

The equal weighted S&P is doing same outperformance.

It looks like stock picking is both in vogue and working for many this year over plain S&P index investing.

While tech stocks rest, chemicals and materials are shining.

Fedex was left for dead, but has helped lead the transports to huge gains since the march lows.

JC offers up that small caps might finally start outperforming technology and mega caps . I think the index has too many weak financial stocks that will just keep it underperforming.

This chart of the retail ETF shows that brick and mortar retail is trying to gather itself and move higher. I watch the mall REIT $SPG and the stock would beg to differ with the retail charts. It is definitely a battle to be watched. One great retailer that is emerging from the pandemic is ‘Five Below’ which has 900 stores. My daughter loves them too. They have 900 stores, great margins and in a post pandemic retail horror show could probably get to 3,000 stores with good leases quickly.

Finally for this week, the asian bellwethers bear market looks over as US tech behemoths correct.

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.