Airbnb expected to go public this week. Analysts saying it will surprise above its target despite all the headj winds the travel industry is facing. Well explaint iwhy ase xdp lunch starts right now. Thank you, ty the dow pullingqback but still above 30,000 only six dow stocks are higher right now. Teq apple is one of fthem the dow industrialso so far today as well as theee nasdaqe pos t composite and russell 2000 each have hit a record high intra day despite the fact the the dow is lagging, only up 5 and 13 gains over here for the Overall Index for the russell 2000 look at other parts of the market were also watching as well look at the semiconductor. Dze cord highsf pushing the semiconductors, possibly a leading indicators for the rest of the markets and another set of record highs tesla. Billion, would make it close to around the sixth biggest stock in the s p when it eventually goes in. That happens before the open of business on december 21ste1. And perhaps Short Co
87, the s p 500 is up 10. 5 this month the russell 2000, the biggest ever month live oly outperforma small caps that sort of sets the scene for us your note today to our producers to me says everything, bryn. You say, yeah, were overbought, the market is technically ahead of itself, 200Day Moving Average but wed be buyers anyway yeah, you summed it up perfectly. I think to give some perspective around that, when youre looking at technicians or technical calls, the 200 Day Moving Average, over 90 of stocks in the s p are over their 200 Day Moving Average when that number gets above 80 , thats typically a time to take a stand back as a trader as an investor, though, as we are, you want to take a look at that and say, hey, if we get a selloff, which im sure well get because thats just the price of admission for being an equity investor, we absolutely want to be in stocks because what are your alternatives cash or bonds . And both of those offer you no yield and so we also think that next
The move in Interest Rates, the impact, if any, it could have on that tech trade. Josh, ten year, 78 basis points, 30year highest since june is this going to be a big risk for that growth trade . Im not sure. It certainly could be. But heres the way that i think we want to think about this. If you go back to february of 2018, that is when the curve peaked, right . Then we had several scarce where we thould we would have a thought we would have a yield curve above those levels but were not there and every time we gotten to that level weve had a big fade what i do think is happening now that is notable, theres a big catchup under way, Small Cap Value is on fire Small Cap Value of 5. 5 over the last three days and large cap tech is not giving up much while thats happening it possible you could have both things working at once i still think that if you get the big cap tech names hanging up there toward highs and not serving as a source of cash and then you get this big catchup trade in the
Great to see you. Thanks for having me ted line as you go from 34. 50 to 35. 25 its on the back of what you have coined the epicenter stocks why today to raise your target i think were nearing a really important level a lot of guys are saying this is a sign of a renewed bull market. I think we should be constructive on an all time break out. I think the upside, which is why were raising our target will come from the epicenter. These go back to their february highs. That adds 150 points to the market add to that to are we are today and that gets 35. 25. You said today was going to be the day for this. What you coined monsterous rally. Theres no real indication, tom, that growth is ready to give up its leadership role, is there . No. People have been successful sticking with the Growth Stocks. I think it will tough to give that up plus they are still cheap against bond proxies the epicenter, these companies have rationalized costs. They are making this at 30 of their sales. We get a reco
The dow is up more than 3 good week for the s p 500 as well the best since early july. As we close out this week its right to point out as tyler just did were not that far away from record highs and that trajectory has been little rocky but its been, you can see to the upside. Just a couple percent away from the record highs that we saw prepandemic back in february as we take stock of the week, check out these particular sectors. They have been a focus for many traders and investors. Check out whats happening with industrial, communication services, internet related names and technology stocks. These three sectors have out performed the500 this week they are the more defensive, less economically sense tiitive names. Theyre all in the green but not as much as the market overall. Watch those as under performers. Can you believe it, tyler, its been two years since that famous or infamous elon musk tesla tweet about funding secured at 420 per share over two years, you can see a 277 gain. B