FOMO Is Back...
The bullish price action in stocks continues and the buying is spreading out across a wide universe of sectors. Technology continues to lead with semiconductors and software stocks trading at or near all-time highs.
All the major indices and sectors I track are trading back above their 200 day moving averages. This is bullish and I suspect has caught many investors off guard, especially those who were shaken out of stocks last fall.
Nearly 70% of the stocks trading on the S&P 500 are back above their 200 day moving average.
It looks like stocks are being chased higher by those who are underweight equities or have failed to participate in this massive three month rally. FOMO (Fear of Missing Out) is starting to kick in.
In Canada the TSX continues to rally and is now less than 1.3% away from all time highs. If the beaten down oil and gas sector finds some buyers it could help take the TSX to new highs very soon.
The momentum continues in select cannabis stocks as some of the lesser known, smaller capitalized names play catch up to the leaders from last year. This sector is not for the faint of heart but it continues to offer up trading opportunities for those that can stomach the volatility and manage risk.
Below are five of the stronger trending stocks in terms of price action on my CM50 (Canadian MegaTrends) & UM50 (US MegaTrends) lists.
Remember that chasing stocks higher is not recommended and even the strongest trending stocks can experience significant selling.
In case you missed it - Will It Be Different This Time? - My previous post about the incredible V bottom we've experienced this year and a couple of divergences I think are worth paying attention to.