Happy Monday from Miami.
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There continues to be something for everyone in 2021.
One of the best stocks of the year is a soda company (Celsius $CELH) who claim their ‘beverage’ burns calories while you drink it…that sure sounds like a drug company.
Now Merck says they have a pill that cures COVID…they definitely are a drug company.
Drugs are having a good year.
As always, Ivanhoff and I got together to make Momentum Monday. You can watch here and I have embedded the episode below on my blog:
If you have owned the right stocks and crypto, 2021 has been epic. If you indexed, the year has been good.
As the world comes out of COVID, I sense some more big trend changes in technology and behaviors. I’m just watching the all-time high lists and trying to interpret catalysts that make sense to me. The FREE and easiest way to track these are using the Stocktwits weekly 25 lists here.
Here are Ivanhoff’s notes:
We saw a big upside move in reopening stocks across the board on Friday after Merck announced their Covid pill. Airlines, restaurants, gyms, entertainment, hotels, casinos are currently among the leaders.
Inflation plays were also on fire. Oil, coal, food producers, fertilizer stocks had a notably strong week. It seems inflation might not be as transitory and low as previously expected by the Fed. One sector’s rising revenue is often another sector’s rising costs. Stocks rarely rise together in a bull market. Every major macro theme has big winners and big losers.
Retailers were hit hard after Bed, Bath, and Beyond reported a big decline in sales and Bank of America downgraded Kohls. In both cases, supply chain pressures were cited as the main reason. The market didn’t wait long and extrapolated that in the entire retail sector. XRT was down almost 5% last Thursday.
Many tech stocks were under heavy pressure for most of the week as interest rates spiked. The overall level of rates is still historically low, so this pullback might end up being a buying opportunity for the best among them but overall there is a good number of broken charts in the sector and they will need time to set up again.
The SPAC market (I am the CEO of $SLAC, a SPAC) continues to slump in a bear market. Charlie has the numbers. It has been grim. It might stay grim, but some great teams can be speculated on now trading at discounts to NAV.
Have a great week everyone.
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.