Weekly Sector Breakdown: Is Risk Back in Style?

Depending on who you ask about the market right now, you'll get a variety of answers.

Some people are hellbent that this is the beginning of a new bull market.

Others, such as myself, realize that this market is still disconnected and avoiding reality at all costs.

Well, there is something to be gleaned from those realities. In a way, neither's right nor wrong.

This market is firmly planted in neutral.

There's undoubtedly some FOMO in play here - or fear of missing out - for some traders who are looking to ride the tail of a small rally.

Heck, the top five companies in the NASDAQ 100 - which has left all other major indexes in the dust this year - have quickly discovered their share prices are directly correlated to the number of times they say "AI."

I kid, I kid. But you better believe there are traders who are buying off hype and hype alone.

Regardless, there is some underlying data that tells me there's been a bit of a sentiment shift in the market - a bit more receptiveness to risk.

If you aren't drilled down on the market at sector-by-sector level, it's something you could easily miss.

But you need to be careful. There's some serious long-term risk on a lot of the stuff that's green right now.

As I pointed out in the video, one of the areas that tipped by hand to the realizations of the above video came from the $10-stock level - which I'm very familiar with thanks to my Alpha Accelerators service.

When stocks that are representative of a weaker economy see buying, I take note.

But one of the best things about the Alpha Accelerators method is that I've found winners in rocky landscapes.

The ability to pinpoint opportunities no matter the market conditions has been extremely useful so far in 2023.

Click here to learn how to become an Alpha Accelerators member today.

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About the Author

Chris Johnson is a highly regarded equity and options analyst who has spent much of his nearly 30-year market career designing and interpreting complex models to help investment firms transform millions of data points into impressive gains for clients.

At heart Chris is a quant - like the "rocket scientists" of investing - with a specialty in applying advanced mathematics like stochastic calculus, linear algebra, differential equations, and statistics to Wall Street's data-rich environment.

He began building his proprietary models in 1998, analyzing about 2,000 records per day. Today, that database, which Chris designed and coded from scratch, analyzes a staggering 700,000 records per day. It's the secret behind his track record.

Chris holds degrees in finance, statistics, and accounting. He worked as a licensed broker for 11 years before taking on the role of Director of Quantitative Analysis at a big-name equity and options research firm for eight years. He recently served as Director of Research of a Cleveland-based investment firm responsible for hundreds of millions in AUM. He is also the Founder/CIO of ETF Advisory Research Partners since 2007, noted for its groundbreaking work in Behavioral Valuation systems. Their research is widely read by leaders in the RIA business.

Chris is ranked in the top 99.3% of financial bloggers and top 98.6% of overall experts by TipRanks, the track record registry of financial analysts dating back to January 2009.

He is a frequent commentator on financial markets for CNBC, Fox, Bloomberg TV, and CBS Radio and has been featured in Barron's, USA Today, Newsweek, and The Wall Street Journal, and numerous books.

Today, Chris is the editor of Night Trader and Penny Hawk. He also contributes to Money Morning as the Quant Analysis Specialist.

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