Good Monday morning everyone from New York.
I am in the Hudson Yards (I call it Dubai) section of Manhattan for meetings the next few days.
Momentum Monday’s never stop so Ivanhoff and I did our weekly video. You can watch/listen here. I have embedded it below:
The market is all Metaverse, crypto, software and silliness at the moment. There is no room for a confusing story or a conglomerate. Rising inflation and accelerating government debt have few scared. I have no idea when and if that changes.
Here are Ivanhoff’s notes:
Even official inflation readings are at record levels. Interest perked up last week. Most financials consolidated recent gains. XLF is looking primed for a breakout. Metals were on fire. XME has built a big base near its 10-year highs, led by stocks like FCX, X, AA, ALB, LTHM. Even gold and silver are pushing higher. If interest rates continue to rise, financials and metals should outperform.
In the meantime, the tech sector is not showing any worries about inflation. The biggest companies are getting bigger and more dominant – AAPL, AMZN, FB, MSFT, NVDA, TSLA, GOOGL, SHOP, AMD. There are also new tech leaders that broke out on strong earnings like ABNB, RBLX, DASH, DOCN, U. In other words, market sentiment is bullish and the slight dips are getting bought.
Cleantech is still a major market theme. Rivian’s IPO stirred speculative juices. If you don’t want the volatility of individual stocks but want to have exposure to this strong trend, PBW is one way to approach it. It’s an ETF that gives you access to electric vehicles, batteries, charging stations, solar, fuel cells, renewable utilities, etc.
Cannabis stocks managed to make a higher low and are now starting to trend higher. MSOS provides good exposure to U.S.-based companies. Some individual players that are currently in play – TLRY, CGC, VFF, GRWG, ACB, etc.
In other Monday reads/notes:
I start my week with the Stocktwits 25 lists – free every Saturday here.
Here is Charlie’s 7 Chart Sunday piece.
Have a great week.
