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Afternoon Note

Relatively Quiet Session

By Charles Payne, CEO & Principal Analyst
2/9/2021 2:07 PM

You know it’s a relatively quiet session when a company that sells underwear is the number one percentage gainer in the entire S&P 500. 

Normalization stocks are under a fair amount of pressure, which seems odd given the continued improvement in Covid-19 trends.

Image

The S&P 500 index has been under slight pressure today with only one clear winner, as others, including Health Care, waffle in and out of positive territory.

S&P 500 Index

 

-0.20%

Communication Services XLC

+0.35%

 

Consumer Discretionary XLY

 

-0.58%

Consumer Staples XLP

 

-0.18%

Energy XLE

 

-1.73%

Financials XLF

 

-0.26%

Health Care XLV

+0.03%

 

Industrials XLI

 

-0.23%

Materials XLB

 

-0.81%

Real Estate XLRE

 

-0.03%

Technology XLK

 

-0.04%

Utilities XLU

 

-0.29%

 

 

Comeback Stock of the Day

Glu Mobile (GLUU) hit my radar probably around the same time it hit most people’s back in 2014 when the publisher of mobile games announced a deal with Kim Kardashian.   I watched the stock for a while and eventually lost interest assuming the deal and the stock were a bust.  

As it turns out, the game was downloaded 60 million times leading the company to renew its partnership for another three and half years in 2020.

I’m not sad I wasn’t in the stock when Electric Arts (EA) announced it was acquiring the company.  It did occur to me though that this is another example of a company that was ahead of itself and eventually found its way.   This stock hit $13.90 back in 2007, and then tumbled all the way to $0.24 in 2008.

The main point is companies can come back. But in real life, it usually doesn’t happen overnight.  The stock had a monster bounce from the 2008 low through 2011, but it only truly lived up to the hype in the past couple of years.

GLUU

Remainder of the Session

I must say if this is consolidation, then I like it.   These sorts of pauses are fantastic for reposition and getting a read on the market.

Right now, the message is those that are long don’t want to get out, and those on the fence would like to see more of a pullback to get in.  The rest are just going to keep hating because they missed it and their approaches do not work anymore.


Comments
Love you and your commentary. Such great advice given with a passion that is contagious!

Dianna McRae on 2/9/2021 2:14:31 PM
I like how you show the sectors. Gives me a good idea of what the big investors are focused on.

Eric Tepen on 2/9/2021 7:13:38 PM
Everyday can't be over the top. We need some calm days for our souls.

Lorin K on 2/9/2021 8:26:48 PM
 

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