The Follow-Through: Strong Start for Stocks
The month of September enjoyed a strong start as last week’s fairy dust from J-Pow continued to work its magic. Short-term market breadth with AT50, the percentage of stocks trading above their 50-day moving averages (DMAs), also continuing higher while leaving behind the longer-term breadth indicator in AT200, the percentage of stocks trading above their respective 200DMAs. The dichotomy is surprising with money pouring into big-cap tech all over again. Many previous rotation cycles led by big cap tech had little to no impact on market breadth whether AT50 or AT200.
Today’s follow-through trade video explains the trades and the results.
Stocks Covered
- S&P 500 (SPY)
- NASDAQ (COMPQX)
- iShares Trust Russell 2000 Index (IWM)
- Volatility index (VIX)
- AT50
- AT200
- Applied Materials (AMAT)
- Best Buy (BBY)
- Caterpillar Inc (CAT)
- Dollar Tree Inc. (DLTR)
- Facebook (FB)
- iShares Expanded Tech Software Sector ETF (IGV)
- Peloton Interactive (PTON)
- Red Robin Gourmet (RRGB)
- SoFi Technologies Inc (SOFI)
- Splunk (SPLK)
- Spotify Technology (SPOT)
- Zendesk Inc (ZEN)
- Iridium Communications (IRDM)
- Workday (WDAY)
- Salesforce.com (CRM)
- LendingClub Corporation (LC)
- Lucid Group, Inc. (LCID)
Be careful out there!
Full disclosure: long UVXY call spread, long CAT calls, short FB and long calls, long RRGB shares and short call, long SPOT call spread, long LCID, long CRM call spread, long IRDM, long SPLK calendar call spread
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