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Momentum Monday - The Degenerate Economy is Stretching Itself But The Market Itself Rotating Rather Well
Howard Lindzon
June 03, 2024
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Welcome back to Momentum Monday!
In today’s episode of Momentum Monday, Ivanhoff and I discuss the following:
Intro and $QQQ
Consumer spending - Consumers Spending but more selectively
Retail stocks
Tech stock talk $MSFT $NVDA $ARM $DELL
Restaurant stocks $CAVA $SG $WING
Reminder: Riley on my team created the ‘Trends With No Friends’ email which is my go to list every day to track what is working and what is not. You can get it for free here.
In This Episode, We Cover:
Here are Ivanhoff’s thoughts:
The S&P 500 had a mid-week pullback but managed to recover in the last 20 minutes of the week. Small caps, Russel 2k, outperformed on Friday, which is what we are supposed to see when interest rates are pulling back. Can they follow through next week? 208-210 seems like a major resistance and potential pivotal area for IWM. A lot will depend on interest rates. Small caps, biotech, homebuilders, and financials have been highly negatively correlation to interest rates lately.
In the meantime, sector rotations continue with full force. While tech, software in particular, was hit hard last week, retailers and energy bounced. Consumer staples and utilities also saw an inflow. The frequent rotations in the market don’t mean that we should become complacent and just buy any dip because all dips eventually get bought in a bull market. Even in a bull market, a correction in individual stock can be deeper and continue longer than most expect. The market is designed to fool the majority.
We remain in a market of stocks environment. This time the opportunities are not only in a small number of tech stocks but more spread out in various sectors – a stock pickers market for nimble traders.
And here are the charts discussed:
PS - Here is the latest ‘Trends With No Friends’ which covers ‘new highs and new lows’ and measures the followers (friends) on Stocktwits versus the prices. Subscribe here.
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