All charts on Momentum Monday are powered by MarketSmith
While Chinese stocks are in a crash mode, we continue to see strength in the U.S. stock market. Last week’s pullback in momentum names seems like another normal pullback within a bull market. They say that bull markets correct through sector rotation. This is exactly what we might be seeing currently in the market as the transportation sector broke out today. There are some many truckers clearing long bases: ECHO, ARCB, XPO, etc.
The cannabis craze has revitalized the interest in many biotechs. Today, we saw a major breakout in a large-cap stock like AMGN. Institutions are looking for a side door to participate in the growth of the cannabis industry and stocks like AMGN and TPB are perking up.
We also took a look at NDAQ, CMG, MCD, SBUX, AVAV, ROKU, etc.