Investors,
Welcome back to another iteration of ‘The Weekly Selection’, where I cover my thoughts on the market, what’s upcoming and some other little nuggets for your enjoyment.
Before we begin, take a look at two recent articles posted last week:
This is the most recent deep dive research and a quick educational piece. Additionally, check out the latest Podcast at the link below, as well as some other socials:
Indices
Last week was packed full with news and events from the new administration that shook up markets. Lets take a look below:
As we can observe, markets traded down to the second pivot from the breakout. Imo, this retest is suggestive that the market is still finding footing in this new administration, since price lines up with the pre election price. Tariff talk, division in the union, and concerns about recessionary policy are all pricing in, and until we make a large reclaim I think the optimal trading environment is on hold.
Gold coming into this week acted well, pushing back up towards highs. Again, gold represents uncertainty in the market. With policy changing weekly, investors are trading risk equities for safer commodities.
Some specific groups are holding up better than others, however the action is not happening close to highs, meaning the only activity in my portfolio will be value based.
Speaking of which, some of the power names have been gutted recently, bringing them back into respectable valuations. VST and POWL are most notable, pulling back deeply into fair value, making a promising R/R trade in the event of a market bounce. These trades are opportune as they are both technically and fundamentally aligned.
Parabolic Trend Analysis
Beyond inc, formerly Overstock saw a significant rise in 2020 as consumers switched to online retailers over brick and mortar through the pandemic.
Assisted by government stimulus, consumers were making large changes in living and work situations, further driving demand for products from Overstock, which offers available products at affordable prices.
Economic tailwinds, consumer trend shifts, homebuying and moving frenzy, and solid fundamental growth were the key drivers of this run, annotated on the chart.
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Upcoming Trends and Themes
The market does not offer much in the way of setups as of late. However, two groups are shaping up nicely, see below
Cybersecurity: CIBR HACK CRWD CYBR FTNT
FTNT 0.00%↑ featured here, as we can see price is retesting a previous breakout. Looks good for upside from here from an R/R perspective.
Independent Power Producers and Equipment: CEG VST VRT OKLO
VST 0.00%↑ coming in and retesting $114 key pivot. Valuation has also become attractive at this price.
Thats all ive got for you this week. If you enjoyed, check out my socials below: