THE WEEKLY TOP 10
Table of Contents:
1) Is all of the good news already priced into the mega-cap techs over the near-term?
2) Some of the obvious froth in the market place is becoming ridiculous.
3) High yield is trying to breakout. If it can, it will be bullish for stocks as well!
4) The housing stocks are a bit overbought, but still look great longer-term.
4a) Expect the migration out of the cities and into the suburbs to continue in 2021.
5) U.S. Treasuries yields fall to new historic lows.......Hello????????
6) Gold is overbought...and so is Bitcoin...but we’re bulls longer-term on both.
7) Starting to see a few cracks in several European markets.
8) The dollar is VERY oversold, but any bounce might be short-lived.
9) Once Biden picks his VP candidate, the campaign can FINALLY begin.
10) Summary of our current stance.
1) The mega-cap techs stocks have reported great earnings. However, they have also seen GREAT rallies...that have taken them to overbought levels...and overvalued levels. So as great as these companies are, their stocks have still become vulnerable to significant declines right now...even if they’re headed a lot further longer-term. Tech stocks ALWAYS see a lot of BIG swings...in BOTH directions...that’s what they do!
2) The froth that has shown up in the stock market recently has become ridiculous. No, it’s not as extreme as it was in 1999/2000, but it IS still there. Anybody who thinks the recent action in stocks like Kodak and Hertz are not obvious signs of froth are idiots.....”Froth” is not always followed immediately by corrections, but we’d also note that we’re not just seeing it is down-and-out companies. There are signs of it in stocks like TSLA and TSM as well.
3) On the positive side of the ...