Conversations with Jaguars – February 23 ($SPX, $CROX, $RBA, $TENB)

Qualitative thoughts on market. Naturally, with Tech being the heavyweight in the S&P and the biggest beneficiary of covid last year, all eyes are on it. But look closely at Transportation, Chemicals, Energy, Metals, Financials, Industrials, Construction, Infrastructure, Travel, Leisure, Retail … what weakness?? They all hit new 52-week high yesterday !! And gapping higher today again! This is the same playbook of rotation from “Growth to Value” that I have been pitching since July last year. Nothing has changed, except Tech is looking heavy and institutional flows into Value sectors have accelerated (for example, now everyone realizes Energy is a Buy after ignoring it for months). This is why your portfolio make-up is so important. If you are tech heavy (which I’ve been avoiding for a long time as I focus on Value), you are getting hurt. And don’t use Tech weakness to make broad blanket assumptions about the market. Reviewing earnings from $CROX, some quick thoughts and channel checks for $RBA, and bull case for $TENB which we are covering first time after a long time.