Stop Neglecting the Unpopular Kids

After all these years, what else would you expect from the fusion of Twitter and finance? Of course everything revolves around the "cool kids," or in this case, cool sectors and stocks which have been unflappable for months on end. Even minor pullback in the likes of AAPL AMZN TSLA ZM seem like an outright miracle for bears, but in reality when you objectively assess those charts over the course of the last few quarters, the dips are barely flesh wounds, if at all. 

We have seen variations of this sort of market before, though this one certainly takes things to a certain extreme. In the end, nothing lasts forever, even when it seems like all the stars are aligned for, say, AMZN to keep ruling the world in all facets as Jeff Bezos pulls one machiavellian string after the next. 

Granted, biotech stocks are coming on nicely today, a sector we have discussed with Members in terms of actionable ideas and trades, also possible buyouts. 

But when is the last time you saw serious attention given to agribusiness stocks? Or coals? Did you know Arch Coal is back from the dead and trading under ticker ARCH now, and looking reasonably strong? We already profiled energy likely being close to a hold-your-nose-and-buy spot, if not one which has already arrived. And the global materials miners in the XME have been quietly strong. 

However, the ag stocks, mostly housed in the XLB sector ETF, are completely off the grid these days, even as the likes of Mosaic, below on its daily chart, fly higher up and out of an attractive, two-month sideways base. Similar comments apply to BG and NTR. 

Going forward, with names like ZM lagging but not knifing lower either, the unpopular sectors we highlighted are going to need to earn their keep of rotation money unless and until the cool kids unwind with more vigor. That said, they are off to a strong start and are doing so in a rather stealth manner, which suits me just fine.