The key to this market recently has been the rotational action that is occurring under the surface.
In recent weeks it has been growth names in sectors such as biotechnology and technology that have been the leaders. The FAANG names have contributed and the "stay-at-home" plays are seeing plenty of momentum chasing.
On Monday there was a sudden shift back to the value stocks that have been lagging. Banks are probably the best example. The sector was up strongly while the growth names lagged.
That rotation didn't last long and now we are seeing precious metals, FAANG names, and other stay-at-home plays find bids again. I good example is Beyond Meat (BYND) , which sold off sharply Monday and is bouncing back even faster Tuesday.
If you are focused on the indices, you are likely missing out on what is moving out there. It is all about sector rotation and stock-picking rather than the overall market direction.
My Stock of the Week is a stay-at-home play. Inseego (INSG) manufactures 5G hot spots and other products that make mobile computing faster and easier. The stock is near support and is basing right now.
Trying to navigate the indices when there is this sort of rotation taking place is very tough as each of the indices have different exposure to the various sectors that are working. I'm sticking with stock-picking.