META - QQQM: Tech Stocks Continue To Churn (Rating Downgrade)
2024-05-06 12:36:22 ET
Summary
- Large-cap growth stocks have crept back relative to the broad market with the bulk of the Q1 earnings season in the books.
- Still, I am downgrading the Invesco NASDAQ 100 ETF from a buy to a hold based on valuation and still-mixed technicals following a major rally since late 2023.
- QQQM has a concentrated portfolio with heavy exposure to the Information Technology sector and a premium valuation.
- I highlight key price levels to monitor on the chart ahead of what has historically been a bullish seasonal stretch.
Large-cap growth stocks have come back into relative favor. The one-month ETF performance heat map below shows that the size and style is about flat whereas some other niches of the stock market remain in the red. Generally impressive Q1 earnings reports from most of the Magnificent Seven companies buoyed the group, with all five of the $1 trillion market cap club members beating on both the top and bottom lines, but I still have my concerns about what the next few months have in store considering the Nasdaq 100’s valuation and dicey technical trends. ...
QQQM: Tech Stocks Continue To Churn (Rating Downgrade)