**Current Themes on Watch**
AI Biotech (ARKG, RXRX, PRME etc) Absolutely slapped, it’s now broken daily extension with the weekly at $19.50; at which point I’ll look to purchase some of the Gene editing names. Again, still somewhat in middle ground here so no need to buy yet.
Robotics (OUST, SYM, TESLA, SERV etc) Thesis remains the same and the sharp pullback is welcomed, ideally we get more selling over the next few weeks even months. One day does not set a trend so no need to get too excited yet.
Space (RDW, RKLB) Similar to the robotic thesis, the pull-back is welcomed. Again, ideally this pulls back further over the next few weeks/months.
Energy (XLE, Natural Gas, Coal, Oil, Plug) Now this is the sector with the most pain, insane selling across the board in Energy, Metals, Minerals you name it. Nothing wrong with nibbling in the long term accounts here.
**Current Leading Names**
SOUN, QUBT,
**Names on watch for new entry or add**
$ATAT – Add on a break of $29.30
**Names to research:**
–
** Daily Brief**
Following the terrible breadth the market finally slipped, logging one of its worst ratio days in years. There are a LOT of charts that now look ugly, with many immediately entering a daily downtrend and an array of failed breakouts.
This also happened the day after fund positioning reached ATH and their cash reserves reached ATL. Even though I of course lost money yesterday, the laugh was worth the expense.
With that said, let’s be real, most of the leading names still look fine on the weeklies. Not a lot has really changed, breadth still sucks, people are still over-positioned into Mag-7 and some sectors are hyper extended to the downside. That’s not usually how tops are put in.
We need to see buyers step in today and we need things to reclaim. Given it’s Christmas next week and volumes are likely to be lighter, there’s not a lot for us to do here, just enjoy some time off.
Leave a Reply