September 7, 2021, 6:22 pm EDT
Dow Jones Retreated
DJIA lost 270 points today after the labor day weekend. However, there are two areas that still performed well:
- Gambling / Gaming / Hotels: WYNN, LVS, MGM, PENN, IGT, CZR, CHDN
- COVID-19 Vaccines: MRNA, NVAX
- FAANG: FB, AMZN, AAPL, NFLX, GOOGL
Stock picking becomes harder because only a few mega stocks are able to make new highs. Also, many stocks are in overbought condition in short term. For example, checking out the Nasdaq chart we will notice it made a new high today by these mega caps. But, their values are far above all moving average lines (20,50,200). It means that getting in at this level exposes a higher risk during pullback.
Meantime, we may find opportunities when looking at COVID-19 related stocks, including hotels and vaccines mentioned above.