November 19, 2021, 1:12 pm EST
Today is the day to show old-new transitions. Old means traditional stocks like transitional energy in crude oil and natural gas or traditional banking. New refers to renewable energy or technology that takes advantage of semiconductors or software. At this moment, DJIA is down about -300 points (-0.8%) and Nasdaq is up about +55 points (+0.3%) where the difference is significant.
- Traditional Energy: XOM, CVX, COP, PSX, VLO
- Financial: BAC, WFC
- Mega Technology: AAPL, AMZN, FB, MSFT, NVDA
- Renewable Energy: NOVA, RUN, ENPH, FSLR, SPWR
It does not make investment easier during the transitions because leading stocks become narrower. The other way to look into this setup is that the stock markets are going through certain changes when the stock markets are near a record high area (S&P 500 and Nasdaq). Transitions could create opportunities for those who understand and prepare for the changes.