New Address as of 10/4/24 — 60 Broad Street, 39th Floor, New York, NY 10004
DJIA: 46,520
Government shutdown… maybe it’s a good thing. At least you don’t have to worry about the ever so important and ever so revised employment numbers. The market itself has been in a bit of a shutdown, what we have called a stall. The Big Cap averages have nudged higher, Tech holds its own and then some, but stocks above the various moving averages have gone nowhere. The A/D numbers are actually negative over the last two weeks. It’s always difficult to measure, but the big positive we see is rotation. And one of the biggest positives there are the Biotechs, long forgotten and rightly so. And the insider buying in Big Pharma proved prescient. We all know how good Gold has been, get it, but wondered what was wrong with Bitcoin. Well, it’s back. Meanwhile, the Bitcoin Miners have performed extremely well, in some cases by changing their stripes. Once, as the name implies, they mined Bitcoin, but now seem Energy providers, a rotation of a different sort.
Good stocks don’t give you a good chance to buy them. Ever notice you’re often told what someone paid for a stock or asked what you paid? It doesn’t matter. No one ever made money buying a stock, you only make or lose money when you sell it. A strong start to a move can make buying difficult, though typically it is a good sign. Recent examples might be the breakouts in Tesla (TSLA – 436) and BABA (189). Dramatic breakouts are not comfortable to buy. Then, too, there’s no big easy money. Given their recent dubious history, it’s not easy to buy the breakout in Biotech.
Frank D. Gretz
PLEASE NOTE: Unless otherwise stated, the firm and any affiliated person or entity 1) either does not own any, or owns less than 1%, of the outstanding shares of any public company mentioned, 2) does not receive, and has not within the past 12 months received, investment banking compensation or other compensation from any public company mentioned, and 3) does not expect within the next three months to receive investment banking compensation or other compensation from any public company mentioned. The firm does not currently make markets in any public securities.
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