The charts in this video are powered by MarketSmith
We saw a big upside move in reopening stocks across the board on Friday after Merck announced their Covid pill. Airlines, restaurants, gyms, entertainment, hotels, casinos are currently among the leaders.
Inflation plays were also on fire. Oil, coal, food producers, fertilizer stocks had a notably strong week. It seems inflation might not be as transitory and low as previously expected by the Fed. One sector’s rising revenue is often another sector’s rising costs. Stocks rarely rise together in a bull market. Every major macro theme has big winners and big losers.
Retailers were hit hard after Bed, Bath, and Beyond reported a big decline in sales and Bank of America downgraded Kohls. In both cases, supply chain pressures were cited as the main reason. The market didn’t wait long and extrapolated that in the entire retail sector. XRT was down almost 5% last Thursday.
Many tech stocks were under heavy pressure for most of the week as interest rates spiked. The overall level of rates is still historically low, so this pullback might end up being a buying opportunity for the best among them but overall there is a good number of broken charts in the sector and they will need time to set up again.
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.
