The charts in this video are powered by MarketSmith
The main stock indexes – S&P 500, Nasdaq 1000, Russell 2k finished last week where they started. In between, they had a hiccup and several mini sector rotations.
Many of the best-performing stocks from 2020 have been major laggards in 2021 – solar, EVs, SPACs, software, etc. Those same 2021 laggards finally woke up last week and started to perk up. The most shorted stocks shone the brightest which is a sign of returning risk appetite. Curiously, it coincided with a rout in the crypto space. It’ll be interesting to see if this development will continue. In the meantime, many of the leaders of 2021 – homebuilders, metals (copper, steel, aluminum, gold, silver, etc.), retailers, financial, oil stocks pulled back, mostly to their rising 20 and 50-day moving averages.
To conclude, last week was a mean-reversion week and the choppy range-bound action is still dominating. One positive development is the emerging markets in several growth stocks like RBLX, UPST, PATH. The list is not long but at least it is not non-existent. The tech sector has stabilized and we are starting to see some positive consolidations in the space – FB, GOOGL, AMAT, ASML, NVDA, etc.
Try my 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 40 list of market leaders, and much more. See some of the recent testimonials.
PERFORMANCE
Here’s a Google spreadsheet tracking all closed options 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.
