With that, we continue to hunt for value across several sectors, none
of which have really broken out to the upside in recent days, other
than eSports and cloud computing stocks, but we wouldn’t necessarily
consider those sectors to be offering any real value right now.
There’s no question we missed a very big move in many of those stocks, however, if you’ve been around long enough then you know they’ll come back to us at some point.
As a matter of fact, many of those names are priced out to lunch right now, so the bottom line is we’re currently opting for a little patience in anticipation of a re-pricing of many of those names once these markets do finally decide to stall.
Although these markets do still have every right to move higher, they’re still struggling to breakout with any sort of conviction. Even the NASDAQ Composite, which continues to lead this multi-year rally higher, hasn’t been able to break new ground yet despite late last week’s snapback reversal.
As you can see here, although the index did have three tremendous days leading up to yesterday, sellers continue to jump on the recent strength over the last few days. Truth is, we’re just not going to chase anything to aggressively higher right now. At least not until the S&P 500 and the DOW want to really to start picking it up.
We suspect the markets could still pull back a little, keeping traders on both sides of the trades honest, especially with the declining volume we’ve seen on the NASDAQ since the index bottomed out last week. That’s at least a little concerning, especially since volumes as a whole to continue to somewhat wane.
There’s no question we missed a very big move in many of those stocks, however, if you’ve been around long enough then you know they’ll come back to us at some point.
As a matter of fact, many of those names are priced out to lunch right now, so the bottom line is we’re currently opting for a little patience in anticipation of a re-pricing of many of those names once these markets do finally decide to stall.
Although these markets do still have every right to move higher, they’re still struggling to breakout with any sort of conviction. Even the NASDAQ Composite, which continues to lead this multi-year rally higher, hasn’t been able to break new ground yet despite late last week’s snapback reversal.
As you can see here, although the index did have three tremendous days leading up to yesterday, sellers continue to jump on the recent strength over the last few days. Truth is, we’re just not going to chase anything to aggressively higher right now. At least not until the S&P 500 and the DOW want to really to start picking it up.
We suspect the markets could still pull back a little, keeping traders on both sides of the trades honest, especially with the declining volume we’ve seen on the NASDAQ since the index bottomed out last week. That’s at least a little concerning, especially since volumes as a whole to continue to somewhat wane.
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