Weekly Macro Themes - US tech stocks are increasingly priced for perfection
This week I covered the following topics/ideas: $S&P 500(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ $NASDAQ(.IXIC)$ $Invesco QQQ(QQQ)$ $NASDAQ 100(NDX)$ $DJIA(.DJI)$ $GLOBAL X DOW 30® COVERED CALL ETF(DJIA)$
1. Stocks vs Bonds: Stocks are expensive vs bonds and outright, while bonds are cheap. But to have conviction in bonds outperforming stocks you need a strong recession/bear market signal (none yet).
2. Defensives: Relative value is extreme cheap, positioning and market cap weight at record lows, and technicals tentatively turning up for this underappreciated alternative hedge.
3. TMT: With valuations surpassing the 2021 highs and only matching the dot-com bubble, US tech stocks are increasingly priced for perfection and at risk of any doubt to dreams of unchecked exponential growth.
4. Bank Check: Global bank stocks are trading on cheap valuations and have seen improved relative performance recently, but still face a key overhead resistance level test.
https://www.topdowncharts.pro/p/weekly-macro-themes-31-may-2024-43e
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