For all of the excitement on the teevee and Twitter, markets will close out August flat. On the upside were terrific gains in the semis, led higher by SEMI (+77%), MU (+20%) and MCHP (+11%).
Banks did well too, bouncing off the lows. Some of the best gains were found overseas, many of which traded up double digits.
Biotechs and many low quality names rallied too, creating an interesting market ruled by advantageous stock pickers. Indexers were left in the dust.
Oil and gas stocks did well, led by gains in high profile names like CHK and CLR.
Utilities traded off, as well as numerous telecoms and other ‘safe haven’ stocks.
Gold traded down, abhorrently.
The Chinese Twitter, WB, traded up 46%. ANGI, YY, YELP and SALE all traded up 20-35%. BABA traded up 17%, highlighting a terrific month for degenerate Chinese burrito stocks listed in the US. Even FIT did well, higher by 12%.
The old guard names, like CRM, AMZN, ORCL, FB, GOOGL and AAPL did absolutely nothing. Zilch.
The fact that mega cap tech and others did poorly most likely means the hedge fund industry underperformed, once again. While it’s true, the bigger names did nothing and the overall indexes traded flat, there are dozens of huge winners found in lowly mid to smaller capped names, and China. Typically, and I don’t mean to be foreboding all the time, this stage of a bull market represents the last leg before the fall. While this isn’t always the case, if recent history is of any use to us at all, the month of September is going to be far less rewarding for people playing with dynamite sticks inside gunpowder factories.
Gentlemen don’t chase degeneracy. They bemuse themselves by watching it from afar.
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Another month, and fly is grumpier than ever.
Cradle my nuts