The View from 5th Avenue

The View at Two – 12 August 2020

To Be or Not to Be – A genuine rotation that is, seems to be the question on everyone’s mind. A 3-day losing streak for big tech accompanied by a curious slide late yesterday furthered the thought but the 2020 darlings responded with a resounding NOT SO FAST today. Yesterday’s move did highlight the crowded nature of a # of trades and what we can expect if/when investors become inclined to unwind. Continued talk of a stalemate in Congress and postponing of college football (a clearer sign the pandemic is far from over) will test this rotation as it remains in its nascent stages. The key level to watch here is the S&P Value ETF June relative high. It remains a bit away from current levels and its only a short term level really; net-net, we’ll need much more confirmation before the rotation becomes a reality.

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