The performance of large tech continues to widen. The NASDAQ 100 QQQ and IWM Russell 2000 ETF diverged back in April and the Russell 2000 ETF is down 5.51% YTD, while the NASDAQ 100 is up 37%.

Valuations are beyond questionable. Tesla is trading to 10 times sales. GM and Ford stocks are worth nearly 90% less in market capitalization, while they have 6 times the sales of Tesla.

Big technology stocks have proven their businesses models can survive economic shock and their shareholders have been rewarded as a result.
Momentum continues to favor the bulls, the broad market has made a parabolic move. A lot of this is driven by fear of missing out “FOMO” and professional money managers playing catch up to their bench marks. It’s extremely frothy and difficult to gauge when this buying will subside. One thing we noticed is the VIX index close to breaking back below $20, which would indicate options premiums are becoming normally priced to historical levels.

The best way to play the equity market is any long stock you hold, make sure you put trailing stop orders so you can capture additional upside, while letting the sell order get pulled higher with the share price. A great saying to keep in mind is “stocks take the stairs up and the elevator down.” We might be on the last step, or only half way up…

http://coppercanyonllc/consultation/
http://coppercanyonllc/disclosures/

Disclosures
Copper Canyon LLC is a Registered Investment Advisor in Orlando, Florida. The firm is regulated by the Office of Financial Regulation, Division of Securities. More information can be found about Copper Canyon LLC CRD#286061, by visiting www.brokercheck.com and typing Copper Canyon LLC into the search box

YouTube Videos, Comments and Posts
All Posts, Articles and Videos should be viewed as stock market commentary. All information detailed and any media shared on YouTube is not investment advice; it merely indicates the opinions and views of Copper Canyon LLC and its Investment Advisors. Any forward-looking statements or share price calculations should not be construed as Investment Advice and are for market commentary purposes only. Past performance is not indicative of future returns and should not be construed as such.

All graphs, charts, formulas or video content do not advise and should not be used for which securities to buy or sell, or when to buy or sell them. Any graphs, charts, formulas or video content do not advise and should not be used to assist any person in making investment decisions such as which securities to buy, sell, or when to buy or sell them.

Firm Persons
Dylan Quintilone
Investment Advisor Representative
CRD# 6732024

Paul Edward Clay
Investment Advisor Representative
CRD# 7145606

Close Bitnami banner
Bitnami