Category: Commentary

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Even the minor dips in the major U.S. stock indexes keep getting bought. Google, Apple, Amazon, Facebook, and Netflix are at or near their all-time highs. In the meantime, emerging and most foreign markets continue to struggle below their 200-day moving averages. The divergence between U.S.and foreign stocks in 2018 has been astounding. It cannot be explained only with the strength of the U.S. Dollar, which is barely up year-to-date: +2.9%.

The IPO market is on absolute fire. It hasn’t been this hot since 2013 when we saw a bunch of biotechs doubling and tripling in a very short period of time. This time, the heroes are software stocks.

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Recent Chinese IPOs have gone wild. Many of them have doubled in a month or two. Highly-shorted stocks are forcing short sellers out of their positions. Many momentum tech stocks are looking dangerously extended, but other sectors are starting to perk up and keep the stock market indexes afloat. Is the market running on fumes or sector rotation will save the day again and keep pushing higher?

We cover QQQ, MSFT, ETSY, MMYT, ROKU, TSLA, ISRG, TWTR, BABA, RH, MA, V, and many others.

Disclaimer: everything on this show is for informational and educational purposes only. The ideas presented are not recommendations to buy or sell stocks. The material presented here might not take into account your specific investment objectives. I may or I may not own some of the securities mentioned. Consult your investment advisor before acting on any of the information provided here.

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Bull markets often correct through sector rotation. When leading sectors take a breather and consolidate, others step up to the plate and break out. While tech and retail shined in the past few weeks, their momentum is starting to show signs of exhaustion. I would not be surprised if we see a short-term rotation as the hot money in the market chases after other sectors. Biotech and financials are prime candidates.

The small-cap biotech ETF, XBI is setting up near its all-time highs.

The large-cap biotech ETF, IBB is building a beautiful base above its 200 and 50-day moving average. Look at this tight range contraction in the past few days. A breakout and a confident close above 110 might spur further momentum. A 4-5% move in IBB usually means 20-30% moves in some individual biotech names.

In the meantime, interest rates are perking up again, which is usually good news for financials. Here’s the regional banks ETF KRE approaching new 52-week highs.

Disclaimer: everything on this website is for informational and educational purposes only. The ideas presented are not recommendations to buy or sell stocks. The material presented here might not take into account your specific investment objectives. I may or I may not own some of the securities mentioned. Consult your investment advisor before acting on any of the information provided here.