SPY inches towards ATH with breadth within the index expanding. Frankly I am bored of hearing the noise around the rate cuts and how it’s the be all and end all of the market. Either way, it’s clear a few names are rallying into it.
For the most part, it’s all range bound action following the sell off the week before.
Accordingly to every qualified accredited investor the market is going to pull back following last nights close.
This has been posted everywhere including just about every news outlet I follow. People act like that chart provides some kind of alpha, which it doesn’t. If everybody believed the outcome due to this chart they’d all flip short, causing the market to squeeze. Focus on important parameters and if the market pulls back a little whilst your position holds then great. If the market shreds, even better, meaning you just need to get on with it.
Moving on…
Following Chinas awful news release and data over the weekend it continues to push higher, with the HK50 attempting to complete a weekly pivot. The success rate if that closes here or higher is extremely high. When stocks begin to rally on bad news it’s more than likely its all priced in. Meaning good news will provide oversized moves and opportunity. So regarding my China positions I’m still happy to sit and wait, thesis remains in tact.
Also, until QQQ says otherwise the tech sector is still bullish.
Nice to see quantum computing names shape up a little, IONQ QBTS RGTI are all trying to pivot. Keeping a close eye on these 3 as if things heat up I’ll be jumping in. IONQ continues to receive strong news catalysts and backing, price action has turned very bullish. It’s also interesting to see fund positioning jump across all quantum names the past few weeks, as shown below:
Space is still looking incredibly bullish with ASTS holding well, RKLB at 52 week highs and RDW consolidating nicely.
RDW still trades at much lower multiples when compared to RKLB and as the CEO correctly states, if space wins Redwire wins. However, I do believe RKLB will always demand a higher multiple until Redwire has their satellite production in full motion.
Again, given the context of the market, tomorrows data and my current positioning, I see no reason to take any new entries. I do however wish to gain longer term exposure to the Quantum computing sector. Also currently researching some smaller cap China names, will post once the write up is complete.
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