Minerva Market View for Dec 18, 2023

Markets continue grinding higher. Mega caps are extended now, and could pull back or consolidate here.

Good evening! Markets continue to grind higher as we’ve expected and positioned for. The mega-caps are getting pretty stretched here:

NYFANG has reached the most overbought levels since the June mania - doesn't mean a correction is due, but the risk/reward is not favorable here. Source: Market Ear

On the other hand, small caps have been filling back and forth over the last couple of days after their epic run from lows to highs in such a short time, and are positioned well to resume their advance:

Chart of VTWO - Russell 2000 ETF

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Portfolio and Performance

We had a mixed day again due to our tilt towards small- and mid-caps. Our overweight to VOO 0.00%↑ in our long-term portfolios has been helping us. Here are the movers in our portfolio today:

Holdings gaining > 1%

Holdings losing > 1%

We bought LPG 0.00%↑ NFLX 0.00%↑ SMCI 0.00%↑ SPNT 0.00%↑ TDW 0.00%↑ TK 0.00%↑.

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Watchlist

For tomorrow, we will be looking at these tickers and adding them based on price/volume action:

Long: TNC 0.00%↑ GOLF 0.00%↑ PLUS 0.00%↑ NVO 0.00%↑ HWM 0.00%↑ WAB 0.00%↑ MDXG 0.00%↑ TEAM 0.00%↑ NVDA 0.00%↑ COLL 0.00%↑ QRVO 0.00%↑ EWW 0.00%↑

Short: KW 0.00%↑ FMC 0.00%↑ EXTR 0.00%↑

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Worth checking out

Wedbush “wish list” for Tech in 2024

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They also shared their outlook for 2023, from which they’ve got a lot of things right!

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Source: Ten Questions Every Investor Should Ask

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Extreme breadth readings bearish in the short-term but bullish in the long-term

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That’s all for now. Happy Trading!

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Disclaimer: This post is for professional investors only and is shared with other like-minded investors for the exchange of views and informational purposes only. Please see the disclosures and disclaimers for more details and always note, we may be entirely wrong and/or may change our mind at any time. This is NOT investment advice, please do your own due diligence.

Nothing in this newsletter is an offer to sell or to buy any security. The author is not responsible for any financial loss you may incur by acting on any information provided in this newsletter. Before making any investment decisions, talk to a financial advisor.

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