The charts in this video are powered by MarketSmith
It is truly astounding how well the indexes are holding considering the recent vast increase in supply via widely popular IPOs like AirBnB and DoorDash which were given very generous valuations and the billions poured in hundreds of SPACs that are going to bring public many private companies that would have otherwise never had the chance to become public. There will be many clunkers among them. Probably 80% of the SPACs will eventually lose more than 80% of their initial valuations or worse so you better have an exit strategy instead of blindly trusting a good story. Among the rough though, there will be some diamonds just like Amazon and Priceline in the late 90s.
We are still in the proverbial market of stocks environment. The mega-caps like AMZN, NVDA, MSFT, FB are struggling and cannot follow through while smaller cap stocks have been on absolute fire, including some little expected industries like oil & gas and even uranium stocks. Don’t get me wrong. Capital is not leaving all large caps. It is just rotating into stocks with fresh catalysts:
- Disney (DIS) broke out to newe all-time highs after announcing new content
- Toyota broke out to new all-time highs after revealing a car battery that can bee fully charged in 10 minutures and lasts for 300 miles
- Starbucks (SBUX) broke to new all-time highs after revealing their new growth strrategy.
In other words, the market is in a good mood. It is not looking to punish stocks for the slightest misstep. It is looking for a reason to send them higher.
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.
