November 23, 2021, 3:10 pm EST
Crossing Fires
Both bulls and bears send crossing fires in the battleground. Today financial and energy sectors rebound again the second day to recover some grounds. Technology and consumer discretionary sectors, which led the rally for the past month with 6-8% gains, faded quickly today. It explains the up in the Dow Jones (+155 points or +0.4%) and down in Nasdaq (-117 or -0.7%).
Here are some highlighted stocks with high volatility::
- Technology: ZM -15%
- Consumer Discretionary: BBY -12%, TSLA -6%
- Energy: NOV, APA +6%
Breadth conditions keep deteriorating which means fewer stocks are in the green colors. It would cause making profitable traders harder in this environment. Thus, it would be wiser to stay calm in terms of trading activities.
Although S&P and Nasdaq are still in the record high zones, there are not many emerging leaders. Here are some exceptions: COST, DLTR, AMD, NVDA, MSFT
Biden administration appointed Jerome Powell again for another term of Fed chairman. This is one of the reasons stock markets remain bullish by ignoring the threat of hyperinflation. However, we think over-borrowing, over-spending, and over-money-printing policies are not sustainable. It is a matter of time that markets would reveal the true result by topping out and rollover. We
Thus, we are still bullish on inflation-sensitive commodities and stocks like energy and material. Clean energy, alternative energy, and infrastructure also look attractive.
