Tech Struggles Continue

JC Parets
March 20, 2024

There hasn't been much going on in the new lows lists this year.

As I've mentioned here plenty, you cannot have a market correction, mathematically, without the prices of stocks falling.

Well, there's been some action in the short-term new lows recently with Technology leading the way.

Half the Large-cap Tech stocks just hit new 10-day lows, and Technology has seen the most amount of new 1-month lows of any sector.

Small-caps have struggled the most:

Meanwhile, the divergence in High Beta continues to persist. You can see the S&P500 Index remain elevated throughout Q1, but High Beta Stocks stopped outperforming.

To be fair, we have not seen High Beta underperforming Low Volatility stocks, which would be consistent with a correction, but the ratio did hit new 1-month lows yesterday:

These divergences don't necessarily need to lead to a massive correction.

They could, of course.

But my bigger point here is that this year is just different than last year.

A lot of the stuff working the best last year, isn't in 2024.

Also, a lot of things that didn't work well last year are working very well in 2024.

It's not necessarily better or worse. It's just different.

And that's ok.

There are plenty of ways to profit in this environment, but only if you've been able to adapt.

We discussed which stocks and sectors are leading the way during this phase of the cycle during our LIVE Conference Call this week.

Check out the video replay here, download the slides, and go through each trade idea.

Then let me know what you think!

JC

 

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As always, if you have any questions about recent price action and what's happening with markets right now, you can always drop us an email.

 

 

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