Are you wondering whether it's justifiable for stocks to be doing what they're doing?
We continue to make new all-time highs, which makes perfect sense. More stocks are participating to the upside. More sectors and industry groups are catching a bid. And more countries around the world are breaking out.
And the bond market agrees!
This has never been about a virus or a vaccine. It's been about credit spreads, which are hitting their lowest levels since February.
If stocks were going to fall apart and these permabears were going to be right, for once, then we'd see it in credit.
As Steve Strazza was putting together the latest "2-to-100" report, he and I were chatting about his latest great stock idea. He is pretty excited about this one, and who am I to not join him?
Every month we get a fresh batch of Monthly Candlesticks. It only happens 12 times a year.
I promise you guys from the bottom of my heart that there is no other part of my entire process that provides as much value and information as my monthly chart review. Premium Members can access the Chartbook here. Stay tuned as we'll be adding more workbooks of charts this week to the Chartbook section.
In the meantime, my friend Josh Brown and I have been doing these short monthly videos since the summer. They're fun and I like how he pushes back against me sometimes. In other interviews they make it too easy on me. I like these!
This month we talk about the breakout in Biotech, Market-cap rotation into Small-caps, European Stocks performing well and what we're doing about Gold & Bitcoin.
In today’s analysis, we’re looking at Media. It’s been one of the subdued sectors in the market and we’ve been observing this space for any signal of revival in momentum.
Let's get into what's happening and how we're approaching it.
Some divergences remain at the index level, but with the Tech-heavy Nasdaq 100 breaking out to new highs...the question is will we see the same rotation back into Technology stocks globally?
In this post, we're taking a look and identifying the best reward/risk in the sector right now.
Something we’ve been working on internally this year is using various bottoms-up tools and scans to complement our top-down approach. One way we’re doing this is by identifying stocks as they climb the market-cap ladder from small, to mid, to large, and ultimately to mega-cap status (over $200B).
Once they graduate from small-cap to mid-cap status (over $2B) they come on our radar. Likewise, when they surpass the roughly $30B mark, they roll off our list.
But the scan doesn’t just end there. We only want to look at the strongest growth industries in the market as that is typically where these potential 50-baggers come from.
This week on Happy Hour w/ Traders, I sit down with venture capitalist Howard Lindzon. He's a Tech investor, or that's what it feels like from my perspective. So my question was how he invests when money is rotating out of large-cap tech and into other areas?
This sparked an interesting conversation about using today's tools to generate new ideas, even if they're out of your wheelhouse. We have a massive community and new tools at our disposal that investors before us never had. Let's be grateful, and let's take advantage!
