Email of the day on speedy market moves
Comment of the Day

February 10 2021

Commentary by Eoin Treacy

Email of the day on speedy market moves

Part of my frustration is that in this current market where momentum is so strong, one doesn't even have time to take aim before these stocks race to new highs on a seemingly daily basis. I think it was late January when you highlighted (I believe for the first time), the breakouts in the 3D printing stocks after many years of base formation. Well today XONE had nearby tripled since then and DDD was up some 60%. It's been the same with so many single stock names.

Eoin Treacy's view

Thanks for this feedback. I agree the markets are moving extremely quickly and that it is not something many people are accustomed to dealing with. The reality is that with zero interest rates and abundant credit sloshing around, investors are being forced to speculate. For seasoned individuals who are not accustomed to seeing a good year’s performance returned in a month this is a very unsettling time. Meanwhile neophytes are being attracted, as they always are, by the promise of outside returns with little to work, insight, research or experience. In a bubble market all you need to do is be there. 

As the chaps at Saxo pointed out in the article, I posted yesterday, ARK investment owns a solid percentage of the free float in Stratasys. The share has completed its base formation. Confirmation that it is now in a sustainable medium-term will be evident in how well it holds the breakout during the first consolidation, which may now be starting.

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