Round Number Road Stop:

So much for the clarion call to the cyclical, industrial names, we heard of all too well in recent months. We know the Dow Jones “Industrial” Average is no longer representative of that group (XLI is up 1.6% YTD thus far). The Nasdaq is now higher by 9% in 2021, as the S&P 500 and Dow has added just 4 and 3% respectively (Russell 2000 is up more than 16%). But technology has been moving higher, absent of some of its most illuminated names like AAPL and AMZN basically flat since last summer. The old saying goes if you want “average” returns, you trade the averages, but stock pickers have been outperforming. And those doing work in individual names, the Nasdaq’s returns suggest you should be looking within the space. The best case scenario, in my opinion which means very little, is for the index to digest the short 8 session move from the round 13000 number to 14000. Look deep within and you will find the stocks that will produce the alpha you desire. 

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