…and picking up steam

I’m on the sidelines and watching.

There is information in today’s trading, even if nothing more than my holdings are really getting beaten up.

For one thing, tech names continue to sell off even though the rally in business cycle-sensitives (maybe reopening-sensitives would be a better term) is fading, for the moment at least.

Another is the difference in performance between tech heavyweights like MSFT and AMZN, which are down by about 2% as I’m writing this, and smaller, more “concept” names like SHOP and BYND, which are off by 4x as much.  To my mind, this underlines the risk in the latter.  Imagine if the market were falling instead of being just flattish.

It’s also interesting to see the resilience of the airlines and cruise lines, despite what I regard as their bleak earnings prospects.

The clear delineation between winners and losers suggests this rally has a lot further to run.

 

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