Find the trading themes and they will reward you. For the better part of the week, we saw two distinictive trends - anything related to “social distancing” and clean energy led the market higher and delivered outstanding returns (NIO, PLUG, DOCU, ETSY, DPZ, CHWY are just a few examples that I took last week). Then, on Thursday night it became clear that a number of White House officials, including Trump, have the virus. All of a sudden, small caps started to outperform on speculation that another big stimulus might be closer than most expect. There’s still plenty of liquidity in the system and it has to go somewhere. We just need to be paying attention and remain nimble.
Here are just a few of the ideas and comments I shared with subscribers last week: