Headline: CDC SAYS FULLY VACCINATED PEOPLE CAN MEET INDOORS WITHOUT MASKS
A question I would ponder aloud late last year was whether the broad market could rally without help from Technology and Communication Services.
The answer today is a resounding yes. Not only is the board market moving higher, but it is doing so with blistering speed. This is important because it means cash is not moving to the sidelines which would be the ultimate sign of fear.
For now, fear is mostly with newer investors that bought high Beta stocks on the way up that never considered they could pullback in equally big clips at a time. Some of these names are becoming extremely oversold – something to keep in mind before bailing in a panic.
Meanwhile, it is strange, ironically, that many of the biggest winners are overvalued based on basic investing rules and tradition. Many of these are directly related to new guidelines from the CDC on vaccinated people meeting indoors without masks.
Financials are ripping, but Materials are the best performing sector.
S&P 500 Index | +0.40% | |
Communication Services XLC | -0.31% | |
Consumer Discretionary XLY | +0.84% | |
Consumer Staples XLP | +0.82% | |
Energy XLE | +0.49% | |
Financials XLF | +2.00% | |
Health Care XLV | +0.79% | |
Industrials XLI | +1.88% | |
Materials XLB | +2.02% | |
Real Estate XLRE | +1.11% | |
Technology XLK | -1.16% | |
Utilities XLU | +1.41% |
By the way, I am loving the action on GameStop (GME). I have Dave Portnoy on the show today discussing his hot new ETF: BUZZ.
Tune in.
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