2024-03-31 22:10:31 ET
Summary
- Glamor stocks in the IT sector and AI-related industries thrived in early Q1, but a rotation that favored the blue chips began in mid-February.
- The WisdomTree Cloud Computing ETF has a premium valuation and lukewarm technical situation, leading me to reiterate a hold rating, though seasonal trends soon turn bullish.
- WCLD targets high-growth cloud companies with strong margins and rising top lines.
- I highlight key price levels to monitor in the months ahead.
Glamor stocks thrived early in 2024 . The Information Technology sector and just about anything AI-related soared through mid-February. A rotation then took place under the market’s surface. Value and cyclical industries took charge; Energy and Financials, along with Communication Services, posted the best Q1 sector returns . In all, the Nasdaq 100 underperformed the S&P 500 as relative strength deteriorated among many tech subindustries, including Software & Cloud Computing, over the back half of the first quarter. ...
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WCLD: Small Cloud Companies Tread Water Amid Sector Rotation