Don’t Confuse Brains With A Bull Market, Or Price With Value

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“If you do something like read a lot of books and talk to a lot of people, you can learn almost anything.” Elon Musk

Market Commentary:Don’t confuse brains with a Bull Market, or price with value

If you went to cash “waiting to see what happens” it just got hard to feel like buying now.

There are plenty of winners, and losers, in this market. The number of new 52- week lows is surprisingly high. The advance/decline line on the NASDAQ is not telling the same bullish story as the NYSE.

There is tremendous strength and activity in the bio- tech sector. I would not have any shorts in this sector. Look for a slew of merger activity. I am ready for one in particular.

It is more of a stock pickers market than usual as momentum factors are currently exaggerated, which is fine by me. It seems like the trading algos have been given unlimited room to run, which is scary to me.

I see blowoff runs taking place in a few names. Be careful of extended stocks, entry points matter. Even great stocks pull back

Economic data and market clues: If you are interested in the stock market, maybe it is time to stop focusing on The Fed and own shares in the best companies in the best sectors.Earning season is in full gear. Be careful. Any weak guidance leads to a pummeling. Maybe this is political too.Watch sectors react to the new administration’s economic plans. I think you will be hearing several pro-business initiatives rather than hearing about which industries are in the crosshairs.Selected current ideas: Magnet® :GeneDx Holdings Shift4 Payment Technipfmc PLC FACTS:Amgen Boston Scientific Dycom