14Apr3:40 pmEST

Sectors with No Sex Appeal Should Rope in the Bear

Headed into the closing bell we are seeing some well-defined selling of the COIN IPO event, be it crypto proxy stocks like MARA MSTR RIOT down sharply, and even premier tech names like AAPL AMZN SQ TSLA, among a whole host of others. 

After an extended melt-up in the QQQ ETF as the seasonally bullish window starts to close a bit (but perhaps not all the way yet), we ought not be shocked by today's events. However, the larger thesis of mine that value dividend payers (e.g. CVS KHC MO PM), energy, materials, and industrials, will outperform pound for pound over the coming quarters is on I maintain. As such, I have had a quick trigger finger when it comes to trading in and out of software names. 

Of course, embedded in the materials space are the ag plays, quite often overlooked and have been for the better part of a decade. But names like BG (below, basing tightly in a daily chart uptrend), ADM, MOS, NTR, are all intriguing long setups here and outperforming nicely today.

With food inflation on the rise with soft commodities, ags seem to be in a pricing power sweet spot, and I think the entire sector is vastly under-owned, under-appreciated, and even mostly unknown by market players who are relatively new to the game. 

Today is just one day. But going forward sectors with "sex appeal" heretofore are likely to lag the stocks and sectors which continue to be out of favor from a sentiment perspective, even if the price action has markedly improved. 

Never Show Your Fangs Unless... Napoleon Complex No More


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