With stocks off to a hot start, and the calendar rolling over into seasonally the worst month of the year for the S&P 500, $SPY I thought it was a good time to look at some trends. Where do I like momentum, where do I want to fade?

The most heavily shorted stocks are on fire to start the year. In Gamestop this spilled over into full-fledged FOMO as the stock soared up over 32% heading into today.

In $GME last week there was a strong rejection at previous support, If the market does turn south, it will be led by the Meme and FOMO stocks. I’m looking short term downside.

Another hot sector is Housing and Housing Manufacturing. This is interesting because they were one of the hardest hit last year.

Yes, they are very interest rate sensitive and should benefit if the FED lowers rates. That’s the bull case. The bear case is IF the fed lowers rates, it will be because of a recession.

If we are in a recession the housing market will be on the front line as FED cannon fodder. Looking forward to April to let this play out.

Finally, mining stocks. They are en fuego China reopening, emerging markets benefitting from the weaker dollar. Looking for leadership in 2023 in mining.


GME, PHM, CLF: Technical Trends & How To Trade | Trading 360| TD Ameritrade Network