README

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General Market commentary

Market closed at ATH yet again today as Joe Biden became the POTUS. The mega caps posted superb gains today with Netflix leading the chart +17%. We can clearly see a ton of FOMO money flowing back to those mega cap stocks. However as we have pointed out, the exceptional returns of those mega caps might be behind us. In a bull market, money rotates back and forth. Therefore as an investor you need to be where the action is to maximize your returns. There’s nothing wrong with buy and hold either! However investors should treat those mega cap stocks as a “savings account” now. These stocks are considered as safe havens therefore they don’t carry a lot of risk premiums.

Quantative market model signal

Midterm trend: bullish
Midterm risk: neutral

Featured charts

Stock of the day has to be Netflix. Netflix posted an astonishing +17% gain today following its earnings report. The big news from the report is that the cash burning machine is expected to be cash flow positive! It even started to consider stock buy backs. But remember, fundamental improvements do NOT always lead to price advance. From June 2018 to June 2020, NFLX stock went no where. From July 2020 to today’s close, NFLX stock went no where. What does this tell you? Even NFLX can let your invested money sitting dead in it. Therefore it is important to emotionally detach yourself from your dear holdings! Finally, please allow us to end today’s post with a quote from Peter Lynch - “The stock doesn’t know you own it”.