Rotation Is Keeping Us Down, Value Stocks Under Pressure - Premarket Prep
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Market rotation.
Benzinga PreMarket Prep 8:00AM ET- 9:00AM ET, BenzingaTV on YouTube.
Market rotation.
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NewsTranscript
00:00 Triple D, I know you always got a good feel, a good take on the market, and I usually do too.
00:07 But man, right now, I'm looking at all these big caps, stocks, Microsoft up nearly four,
00:14 Amazon up 10, NVIDIA up three, Tesla up two. How come we're not like 15, 20 handles higher?
00:22 The exact opposite to what has been happening for the last six months is rotation was, you know,
00:31 always been the problem where rotation and we've got a sell-off in a stock with something else
00:35 picking up the slack. We're seeing the opposite problem here now. You can get the mega caps going
00:40 up, but what do they do? The rotation is keeping us down. So you have the IWM getting smacked around
00:47 here this morning. It's down 0.3% because you know what? The tech stocks are up, but they want
00:51 to sell something and they don't want to buy the SPY. And if you don't want to buy the SPY,
00:55 you've got to be selling something. They're selling the small caps. The banks are under
00:59 pressure here this morning. Some of your value stocks are looking like they're under pressure
01:04 here this morning. So exact opposite. I mean, we have turned in sentiment here. Is it temporary?
01:11 That's the big question. We don't know the answer to that, but we could feel it last week starting.
01:16 And you know, this week has definitely been the case. Rips getting sold, rotation holding us down
01:22 instead of rotation holding us up. You know, lifeblood of a bear market, JC Peretz, or I say
01:28 of a bull market is rotation. Well, it can work the opposite way too. And we're not in a bear
01:33 market here, but we have turned temporarily. We have turned. Sentiment has turned. Amazon,
01:39 Apple to the rescue. Amazon tried last night. Apple, we're not being rescued so far though.
01:47 Maybe it's going to change, but so far, really not so good.