Hey Market Pilots,
Mother’s Day was over the weekend and I hope all the mothers out there got the acknowledgment they deserve and a nice casual day. For my mom, we decided to go out in the new boat that we just purchased and get some much needed fresh air and family time. In Washington, the weather is still a little cold so we had to bundle up despite the clear day. And if this newsletter is just now reminding you about Mother’s Day (no judgment, I’ve been there before) then be sure to take a minute and call your mom tonight. She would love it even if it’s delayed.
As for the markets, the S&P 500 (SPY) and Dow Jones Industrial Average (DIA) just reached new all-time highs, the QQQ pulled back and found support at the daily 50, and the Russell 2000 (IWM) continues to chop. It is interesting to see the differences between the indexes and how that translates into which names are finding success in the market. I am finding myself having to look at sectors I’m not normally used to trading and they are not quite as exciting as the runs that we had a few months ago, but the setups are still presenting themselves and there’s always a bull market somewhere.
The general theme seems to be with names that are connected to finance, industrials, reopening plays, and inflation-type plays. Stepping into these kinds of trades, I’m aware that I’m going to have to be more patient to get the same percentage of return, and I’m going to have to be okay with a choppier ascending trend. These types of plays that I’ve been seeing tend to like to move about a 45-degree angle upward, but not with any real explosiveness. Mostly, they seem to just be slow and steady names that ascend and appreciate in price over time.
We take what the market will give us and while I would much rather have more exciting moves that we would see in small cap stocks, our job is to find strength in whatever form it presents itself, apply capital to the setup, and grow our accounts. So if that means having to trade something like Foot Locker, coffee, or tractors, I’ll take it and make the best of the situation.
You Profit Pilot, TG.
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