The indices are hitting their highest levels since early March but there is a strong rotation taking place under the surface again which is causing some choppy trading. Banks (KBE) and financials (XLF) are leading a move back into 'value' plays. In view of how many growth stocks have become technically extended, it isn't a big surprise that money is flowing into some of the lagging growth names for a change.
The Nasdaq 100 (QQQ) , which is the home of the FANG stocks and other growth names, is lagging with a gain of about 0.17%. All the FAANG stocks are trading down.
Last week I discussed how 'value' stocks don't tend to be the best leadership. The value group led for a couple of days but then that reversed and we saw a surge in speculative trading. There is still good speculative trading but it has thinned as the money moves to 'value'.
One group of interest is gambling. There is news that a sports gambling bill has been advanced in the California state senate and that is attracting some speculation in some of the secondary gambling plays like Esports Entertainment (GMBL) .
This action can be challenging to trade as it is rotational. The names that have been the best lately are lagging and it can be tough to make a sudden shift. Groups like precious metals did very well lately but are now lagging.
I'm staying selective with new trades and am keeping stops quite tight.