Rotations are beautiful things. We've spent the last couple of days enjoying a PepsiCo (PEP) rally; classic old growth stock catching up to the rest of the market. I think it is getting long in the tooth. So what happens when a rotation, any rotation, burns out? The money always searches for a new home but in the interim it returns to, you bet, FANG.
It's amazing how time-honored this pause is. It's almost like a rest stop on the highway.
If the stocks finish up, there's usually a two-day rally as the analysts who cover Facebook (FB) , Amazon (AMZN) , Netflix (NFLX) and, to a lesser extent Alphabet (GOOGL) , have been looking for an up day so they can come out of their foxholes and say something good.
What's good to see? It's a little deeper than just FANG. We've got some biotechs spiking, no doubt off of Sage (SAGE) , as the FDA fast-tracked their anti-depression drug. The cloud kings are doing well, perhaps ahead of what I think will be a blowout Adobe (ADBE) quarter on Thursday. And Paypal (PYPL) is breaking out for no good reason whatsoever which, given its size in the Action Alerts Plus portfolio is good enough for me!