Sethi Associates

 As we approach the open... - 5/28/21 As we approach the open of US equity trading in New York, domestic equities are following our script with gains across the board but with small caps leading for a third day with the RUT up half percent, SPX trading just over quarter percent up, while NDX trades up around two tenths.   In U.S. corporate news: Apple (AAPL 125.76 , +0.47): +0.4% amid an analyst downgrade to Sell from Neutral at New Street. On a related note, the company is aiming to refresh entry level AirPods in 2021 and AirPods Pro in 2022, according to Bloomberg.  Salesforce (CRM 237.50, +11.67): +5.0% after crushing top and bottom-line estimates and issuing upbeat guidance for Q2 and FY22.  Costco (COST 385.00, -2.50): -0.7% despite beating top and bottom-line estimates. Ulta Beauty (ULTA 346.30, +17.94): +5.5% after beating top and bottom-line estimates and raising its FY22 EPS and revenue guidance above consensus. HP Inc. (HPQ 30.26, -1.84.): -5.8% despit...

Daily Summary – May 27, 2021 - Small Caps Outperform Again If you've been reading the technical portion of this summary, you would know that I first asked RUT to get over its 50-DMA, which it did yesterday, then I asked if it could follow with a strong day or two, and it did that today with a solid 1% gain.  You'll have to read that section to find out what it needs to do next. But for a second day small caps (and, again, the smaller the better as the microcaps were up 1.78% today) easily outpaced the larger indices, but in a change growth conspicuously lagged (yesterday it was not so clear).  In addition to the RUT up 1% as noted, scoreboard had SPX up a tenth, Naz flat, and NDX down a third of a percent. But as you can see from the style box, most of the growth weakness was in the big caps.  And the more speculative stocks continued to have good action with AMC shooting higher (up over 30%) and ARKK  continuing to do well (ARKK up for 4th day in a row (although com...