Quite a few stuffs in the large caps as money rotated to other sectors, ideally we see follow through over the next few days. NFLX, TSLA, NVDA etc all aggressive daily candles.
Oil & Uranium where the major under-performers thanks to the ceasefire news, I’ve been waiting to get a good entry in Oil & Gas; should we get a steeper pullback in the weekly MAs I’ll be looking to buy.
Solar names caught a strong bid, after Musk mentioned the entire world can and should be run on solar panels. FSLR was the previous leader yet ENPH SEDG and RUN showed some very aggressive buying.
I think we’re all aware that a few sectors such as EVOLs, Space, Quantum etc are short term extended. Some are calling this a euphoric top and I’m seeing a lot of traders exit the majority of their positions. The problem is, when you zoom out and realise that small caps as a whole have done nothing in 4 years, with the majority still down 70-90% from their 2021 highs and IWM just trying to breakout into ATH, it could just be getting started. It’s worth remembering that a theme usually lasts around 6 ERs which is 18 months. For a lot of the names viewed as extended it’s been 5-10 days.
We definitely need some sideways action, yet there are a lot of sectors that haven’t even broken out from their Stage 1 bases yet. Is it not plausible the money rotates there for the time being?
A top is usually apparent once everything starts to move, not just some of it. This should be obvious the moment people start buying EVGN, then we’ll know to sell everything.
Right now I have nothing new on watch that hasn’t already been mentioned, currently reading through a load of Biotech reports following yesterdays thoughts.
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