Yesterday I advocated being invested in technology and the tech heavy Nasdaq 100 (NDX). Today I will reiterate my call to commit capital to Chinese Internet Stocks, the New Four Horsemen of the NASDAQ.That was of course also in preparation for the Alibaba (BABA) IPO.
Today is Singles Day in China while it is Veterans Day in the US. Singles Day is a day for single people in China to socialize and connect with each other. It is also a day when internet shopping and gift giving looms large in China, sort of like our Black Friday. Alibaba reported $2 billion in sales in the first hour of Singles Day. Perhaps it is a way that we could reinvigorate or modernize the concept of Sadie Hawkins dances.
Rather, here in the United States we will commemorate Veterans’ Day. That takes place in two ways. First and traditionally is recognition of all those men and women who have served in the armed forces to defend our nation. The other way is to run sales across Retail America. .If there is ever an excuse to run sales, Americans can certainly come up with one.
Trucking with Swift
As for the stock market on Monday, there were new highs for the S&P 100 (SPX) and Dow Jones Industrials (INDU). For added measure, the NDX outperformed both of those indexes for the day. I put money to work in the trucking industry by making investment purchases in Swift Transportation (SWFT).
Swift is certain to benefit from ever lower crude oil prices and a growing economy. One of the biggest impediments to this industry was a scarcity of drivers due to low pay. Swift has increased pay and can divert gasoline savings to increase pay and hence get more trucks and cargo on the roads.
The Trend is Your Friend
Asian markets; European and US index futures rose overnight. Unless there are any negative or divergent news, we will continue to make new highs in the US. There will be some off days when the markets pull back but nothing of severe magnitude. The trend is clearly telling us that higher equity prices will prevail. As we say on Wall Street, “the trend is your friend.”
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Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long BABA, SWFT & QLD— although positions can change at any time.
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