The charts in this video are powered by MarketSmith
The S&P 500 hit new all-time highs and it is now up 5% for the year. The Nasdaq 100 accelerated lifted by the big five tech stocks that now account for 50% of it – AAPL, AMZN, GOOGL, MSFT, FB.
Stock splits seem to be moving prices again. A Deja Vu from the late 90s. In theory, a stock split should have zero impact on a price. In practice, it has done crazy miracles. Apple announced a 4 to 1 stock split, then the company hit a $2 Trillion valuation and kept going. Tesla went up almost 50% after announcing a 5 to 1 split.
In the meantime, the small-cap ETF Russell 2000 tested its 20-day moving average and market breadth hasn’t looked this bad in a while. Will it matter this time? In a strong bull market, such divergences can be resolved through sector rotation. The small-caps can bounce next week and everything will be forgotten. We saw it numerous times in the past few months. Just when a sector was looking ready to roll over, it woke up and jumped higher. Software and biotech are the most recent examples.
Try my new subscription service which includes a private Twitter feed with option and stock ideas, emails with concise market commentary and actionable swing, intraday, and position trade ideas, the Momentum 50 list of market leaders, and much more. See some of the recent testimonials.
PERFORMANCE
Here’s a Google spreadsheet tracking all closed option and stock ideas shared on my private Twitter stream and emails for subscribers.
Check out my free weekly email. to get an idea of the content I share with members.
Disclaimer: Everything I share is for educational and informational purposes only and it should not be considered financial advice.
