BABA and NTES are timely again after their recent corrections

If you didn’t have a chance to join our FSInsight Virtual Conference on Thursday you can find the replay at this link (click here). My technical analysis presentation begins at 1:39:20 and at 1:48:10 I discuss the hotly debated topic of growth stocks versus value stocks.

While I expect cyclicals to outperform into Q1 and likely through 2021, I don’t believe growth stocks are establishing long-term tops as some market pundits have suggested. From my technical perspective, there simply is insufficient technical evidence to make that case. Sure, many growth are well advanced above their uptrends but many other growth stocks are working through orderly sideways trading ranges or consolidations. I view these types of pauses in uptrends as normal and healthy technical behavior. It is not unusual in bull markets for leading stocks to pause, consolidate and catch up to longer-term moving averages which is often near their 200-day averages. Bull markets are a type of relay race where leadership is often passed between a number of market leading groups.

Why is this relevant now? Well, after pulling back from their late summer and fall highs, a growing list of growth stocks are moving back to levels where I expect t...

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