Momentum Monday – Anything Could Happen

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Good morning.

I really have that feeling that anything could happen this summer.

Technology stocks did stop going down the last week which was some relief, but one week does not make for much of a trend.

Interest rates are not really helping this stock move and the US dollar is still the best dinero in neighborhood full of crappy dinero’s (not great for US stocks).

As always, Ivanhoff an I tour the markets and find some strength in the healthcare sector for those that care. You can watch/listen right here. I have embedded the show below:

Here are Ivanhoff’s thoughts:

The week after the 4th of July is seasonally strong for stocks. This year was not any different. All major stock indexes gained ground. The Nasdaq 100 rallied to its 50-day moving average. The worst-hit groups in the past year and a half went up the most – biotech, cloud, software, and recent IPOs.

What’s more interesting about last week’s price action is that the strength in so many high P/E and high P/S companies came in the face of rising interest rates. Rising interest rates have been a tailwind for oil & gas stocks and a headwind for tech in the most recent past. The next week or two will tell us if the correlations have changed as Treasuries have been a leading indicator.

There are not many stocks trading near their 52-week highs. Two main groups are standing out so far – biotech like HALO, HRMY, CORT, UTHR, VRTX, VIVO and defensive stocks like pharmaceuticals LLY, MRK; health care plans like HUM, CI; consumer staples like GIS, DG, DLTR. Most of the latter are low-growth, slow movers. There are only a handful of high-growth names that are setting up – SWAV, LNTH, CELH, FNKO. The solar industry certainly stood out as a group last week with notable breakouts in ENPH, SEDG, JKS, DQ.

Elsewhere:

Charlie’s 10 chart Saturday is excellent.

Charlie also has his ‘week in charts’ on YouTube which is worth a free subscribe of course.

Finally, here is this weeks Stocktwits 25 momentum lists.

Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security. For full disclosures, click here.