The same trends persist. Interest rates are going higher which is putting downside pressure on richly-valued tech stocks. The so-called old-economy stocks continue to rise.
The market continues to relentlessly pricing in going back to normal at some point this year. Anything related to leisure has been on absolute fire - hotels (MAR, HTHT, ABNB), airlines (DAL, UAL, UAL, etc.), travel agencies (BKNG, EXPE, TRIP), entertainment (VIAC, DISCA), restaurants (RUTH, CHEF, CAKE), retailers (JWN, M), etc. The market always over-discounts potential threats and opportunities, so industry moves often go a lot further than most think it is reasonable. Rational expectations account for only for the first 30% of a typical move. Everything after that is pure momentum speculation, short squeeze, and FOMO.
Maybe it's the new round of stimulus that is spurring the speculative spirit or the fear of inflation, but many crypto currencies are hitting new highs this weekend. The blockchain-related stocks started to break out last week and many of them are looking constructively for higher prices - BTBT, BLOK, RIOT, MARA, NCTY, MSTR, etc.
Here are just a few of the ideas and comments I shared with subscribers last week: