Santa Claus rally in a bifurcated market?
We are in a bifurcated market where there are opportunities in either long or short direction since Nov.
Many growth stocks like $Sea(SE.US$, $Twilio(TWLO.US$, $Unity Software(U.US$, $CrowdStrike(CRWD.US$ $Affirm Holdings(AFRM.US$ $Fiverr International(FVRR.US$ $Roku Inc(ROKU.US$ $MercadoLibre(MELI.US$ $DocuSign(DOCU.US$ $PayPal(PYPL.US$ are deeply oversold (30-60%).
Or as per Cathie Wood, they are in deep value zone.
Some of them showed relative strength against the $S&P 500 Index(.SPX.US$ and near the support. There are some entry setups with decent reward to risk.
Possible to ride the overdued short term up swing after oversold with the current or aka the coming Santa Claus rally.
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Mike Hunt : They are in deep value zone because Cathy puts a target on them. When she was the darling of the investment world she obviously created some resentment and there are definitely some institutional Cathy haters. The part that baffles me is her stupidity of posting her moves on a daily basis instead of holding her cards to her chest like everyone from Warren Buffett down to the $10 million market cap Stock does. Any trade completed today by non-Cathy institutions won’t disclose until early February on an 13 F what it was. And even then, that disclosure doesn’t mean that it’s still owned by that institutional market player because if they sold it in January nobody finds out about it until April. I don’t see the upside for doing what Cathy does and I see her demonstrating the downside.
WYCKOFFPROOP Mike Hunt: She is proud of her transparency in doing so. From a long term perspective 3-5 years, those growth stocks should be doing well.
Mike Hunt WYCKOFFPROOP: Pride and portfolio returns I’ve found have an inverse relationship. I’d rather have zero notoriety with huge returns than be proud in public and have poor returns. The only real measuring stick in the investing world is portfolio returns and Cathy compromises that. I agree with you that her growth stocks will do well in 3-5 years and I have benefited from deep discounted entry pricing I would not have had otherwise thanks to her broadcasting her buys and causing the stock to tank.
But some of her previous winners have never recovered. NNDM, SURF, TDOC etc.