Depending on who you ask about the market right now, you’ll get a variety of answers.
Some people are hellbent that this is the beginning of a new bull market.
Others, such as myself, realize that this market is still disconnected and avoiding reality at all costs.
Well, there is something to be gleaned from those realities. In a way, neither’s right nor wrong.
This market is firmly planted in neutral.
There’s undoubtedly some FOMO in play here – or fear of missing out – for some traders who are looking to ride the tail of a small rally.
Heck, the top five companies in the NASDAQ 100 – which has left all other major indexes in the dust this year – have quickly discovered their share prices are directly correlated to the number of times they say “AI.”
I kid, I kid. But you better believe there are traders who are buying off hype and hype alone.
Regardless, there is some underlying data that tells me there’s been a bit of a sentiment shift in the market – a bit more receptiveness to risk.
If you aren’t drilled down on the market at sector-by-sector level, it’s something you could easily miss.
But you need to be careful. There’s some serious long-term risk on a lot of the stuff that’s green right now.
As I pointed out in the video, one of the areas that tipped by hand to the realizations of the above video came from the $10-stock level – which I’m very familiar with thanks to my Alpha Accelerators service.
When stocks that are representative of a weaker economy see buying, I take note.
But one of the best things about the Alpha Accelerators method is that I’ve found winners in rocky landscapes.
The ability to pinpoint opportunities no matter the market conditions has been extremely useful so far in 2023.
May 23 2023