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Momentum Monday - Some Healthy Sector Rotation...But Pain For Classic Consumer Brands Continues
Howard Lindzon
July 01, 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 Tech Stocks
Russell 2000 and Small Caps
Struggles of Classic Consumer Brands - $NKE, $SBUX, $DIS
$AAPL, $NVDA, and more
Biotech and Robotics
New York Times Looking Good? Baby Facebook For Opinions Our Enemies Like
$DJT, $UBER and Outro
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:
Bull markets correct through sector rotations. This is exactly what we saw last week. While the semiconductor leaders pulled back to consolidate recent gains, other sectors bounced.
It has become typical for financials to rally ahead of earnings and then sell off after the reports. Can we see a repeat?
Software and Internet stocks had a big week led by Google, Amazon, Meta, and Datadog.
The PCE inflation came within estimates last Friday – 2.6% year over year. Small caps gapped up on the news but then tapered. They continue to underperform significantly. Unless interest rates really crash, this is not likely to change.
There are many eyes on biotech. If XBI manages to go above 95, we might see another rotation.
Overall, it has been a choppy tape to trade lately. Many of the breakouts would last one, maybe two days, and then they would fizzle and reverse. There have been great opportunities but you had to be fast to take advantage of them because they didn’t last long.
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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