Get 40% Off
🚀 Our AI Picked 6 Stocks that Jumped +25% in Q1. Which Picks Will Soar in Q2?Unlock full list

More broadening: BTIG says there are many opportunities beyond 'high momentum names'

Published 2024-03-04, 07:58 a/m
Updated 2024-03-04, 07:58 a/m
© Reuters.

Driven by a sustained momentum in AI, capitalization-weighted market indices continue to advance, with the tech-heavy Nasdaq-100 not experiencing a decline of -2.5% or more for 302 days.

This duration marks the third-longest period without such a drop since 1990, analysts at BTIG highlighted in a Sunday note.

Although not necessarily a bearish indicator, this trend suggests a level of short-term complacency in the market, they noted.

That said, it appears there is more broadening “under the surface and there are plenty of opportunities outside of the super high-momentum names that are far from timely, in our view,” the analysts wrote.

Chip stocks continue to hit new records, with the S&P 500 semiconductor index matching its highest two-year gain.

“S&P 500 semi index now tied for the best two-year performance (+131%) on record with ’98 -’99. Weekly RSI is ~84, one of the highest on record. This doesn’t always mean a top, but it has often led to corrections,” analysts at BTIG said.

Meanwhile, the equal-weight RSP and the mid-cap MDY indexes are approaching their historical peaks, while the reflation trade, excluding energy, is also showing signs of a breakout with its index on the rise.

Moreover, last week saw crude oil and gasoline prices surge, while gold achieved a record weekly close after four years of steady levels.

In addition, the biotech sector also showed strength, potentially indicating a significant breakout.

“Last week was an important one for biotech, with an upside gap through resistance. This should now be considered a viable breakaway gap, with upside room towards the 120-130 level,” the analysts commented.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.