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 Droning-Out posted last week. This is the most recent deep dive research piece. Additionally, check out the latest Podcast at the link below.
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Indices
This week is shorter than most, with the observance of Presidents Day today. Four day weeks are historically fairly low volume, but with the way the market has been acting for the last few months I seldom believe this will be the case.
Taking a look at the equal weight Magnificent 7 stocks, we can see the range is pure and appears ready for a move higher. Theres alot of speculation in the market right now which is certainly amplifying the news, but this type of setup on the biggest stocks in the market is generally more bullish than bearish in an uptrend.
GLD 0.00%↑ Apologies that the chart here looks like a warzone, its been a hell of a run and I have been quite active trading and holding. Looks great though pushing out to all time highs.
$NQ has been most impressive these last few months. As we can see towards the end it is slightly outperforming Mag-7 and I think that persists into the future.
Parabolic Trend Analysis
VST Was a super performer in 2024. This AI power demand shift has been the biggest impact to power producers since the invention of the internet.
Monster growth, initiatives to develop and deploy nuclear facilities, the reduction of fossil fuel plants and replacement with new alternative plants and efficiency improvements have led to this meteoric rise. There is an article discussing VST 0.00%↑ which can be found HERE.
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Themes and Trends
The market remains fairly focused. I have been adamant about a few themes and I think the points still stands. Elon Musk is going to Mars, Deportation will come to fruition, and the US needs more power. In laymans terms - Space, home land security, and electric utilities remain strong. See below:
SPACE: RKLB 0.00%↑ SATL 0.00%↑ ASTS 0.00%↑ RDW 0.00%↑ KRMN 0.00%↑
RKLB 0.00%↑ seen above. I’ve discussed this enough here to not need an introduction. However, there is a new dog in the space race - KRMN. I will likely carry out a full report on this in the future.
HOMELAND SECURITY: BYRN 0.00%↑ AXON 0.00%↑ GEO 0.00%↑
BYRN 0.00%↑ beautiful look here. extremely linear mover and strong volume through breakouts. Their product suite contains mostly personal defense items and non lethal alternatives for offense.
ELECTRIC UTILITIES & EQUIPMENT: VST 0.00%↑ CEG 0.00%↑ POWL 0.00%↑ VRT 0.00%↑
VST 0.00%↑ poised into earnings in a couple weeks. Their last report was strong in my opinion, but wasn’t met with the response I anticipated. Either the trade is crowded and this next report will reveal that, or some price compression needed to occur to let value catch back up. In any case, the setup is pure.
Thats all for this week!
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