Market Report Jul 02 2023

The trading week will likely be disrupted due to the July 4th holiday and the release of non-farm payroll data. We should take a break and potentially leverage this as an extended holiday period.

The current market is generally regarded as a bull market, as indicated by the performance of various bull markets throughout history. However, it's important to note that this trend is being driven by retail traders, with institutional investors showing lesser interest, as inferred from the comparatively lower trading volumes.

As the market continues to rise, investors should exercise caution and avoid buying into the market out of fear of missing out. Instead, they should wait for a pullback before entering into new trades.

ARK Innovation ETF have shown notable performance, with the latter outperforming short-sellers betting against it. Meanwhile, Spotify has potential growth prospects due to its planned video feature.

Volkswagen's announcement of lower than anticipated demand for their electric vehicles (EVs) and subsequent downsizing of its EV staff presents an unexpected market development.

Regarding EVs, Tesla, having outperformed in terms of its stock performance, continues to dominate the EV market due to a lack of significant competition.
Apple, with its record $3 trillion market capitalization, is another notable mention, representing a robust player in the technology sector.

Investors are advised to prepare for potential opportunities in the technology sector, particularly towards the end of Q3 and the beginning of Q4, and consider adding stocks that show strength during a market pullback.

Anne Chapman

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