Joel Elconin, Co-Host of the Benzinga PreMarket Prep Show and Editor of the PreMarket Prep website, joins us to discuss the continued rally in equities, and the rotation trade out of sector leading FAANG stocks, and the importance of diversification in one’s portfolio. We start off by recapping the market take on the recent CPI and PPI inflation data from the last 2 weeks, and how this shifted expectations for Fed policy moving forward.
Next we shift over to the retail sector, and how Walmart raised the bar for the holiday season, on to have Target dash those dreams shortly thereafter, with many other stocks following a similar pattern of a big pop, followed by a drop. The discussion then gets into the huge valuation mismatches still seen in many of the tech and growth stocks, only compounded by this recent rally in many sectors and stocks. We postulate that after this there may be a rotation out of the FAANG stocks, and into other market sectors, as investors seek new leadership in many indexes. We wrap up by getting the technical levels and trajectory that Joel is looking at as far as the cryptocurrencies.