My Thursday evening was a bit topsy turvy and I could not get my commentary out for Friday. However, Thursday was a positive but quiet session with no real news to report. Friday was spent looking at the masses waiting to order an Apple (AAPL) iWatch with techs leading the market higher. I suspect that today, we will get the Monday morning quarterbacking by the media and analysts as to how exit polls from Apple stores and online activity predict iWatch orders.
Investors Are Drawn to Stocks
The S&P 500 (SPX) is now on a three day winning streak and now stands within one percent, 0.73% to be exact, of its all-time high set in early March. Not to be outdone, the Hong Kong Hang Seng and Euro Stoxx 50 (SX5E) indexes are trading at all-time highs. Global investors are beginning to fall in love again with stocks, albeit seemingly begrudgingly. In the meantime, traders and hedge funds are shorting stocks at record levels not seen since the 2011 European debt crisis and the 2008-09 global financial crises. The only difference is that now, there are no externalities to warrant such activity. Hence, it seems more speculative than substantive.
We survived the big Hillary Clinton announcement, which was as surprising as Barry Bonds using performance enhancing drugs. Next on the hit parade is Marco Rubio who will decide if he runs for POTUS or reelection to the US Senate.
Biotechs and US Dollar Back on Top
Today the earnings calendar is quiet and the economic calendar is empty. The attention will be on the US Dollar which is starting to gather steam again and the aforementioned iWatch sales. Biotechs are also heating up once again after experiencing a pullback the past few weeks. The more you hear about a biotech bubble, the less likely we are experiencing one. My favorite play in the sector is a small cap biotech ETF, the ALPS Medical Breakthrough (SBIO). Fair warning, this ETF has only $55 million in assets and can be quite volatile.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long AAPL and SBIO — although positions can change at any time.
Scott Rothbort is the President & Founder of LakeView Asset Management, LLC, a registered investment advisor specializing in high net worth private wealth management. For more information on investing with LakeView Asset Management, LLC call us at 888-9LAKEVIEW or request more information by clicking on the contact button on the top right hand corner of the website.
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