It’s August, and volumes are seasonally light. But there are some surprising pockets of strength — and not just technology. Speculative technology has been having a moment in the last month, as many of Cathie Wood’s holdings have rocketed off of their June lows. Ark Innovation holdings (since July 1) Coinbase : up 108% Roblox : up 48% Block: up 39% Unity Software: up 35% Robinhood: up 29% Spotify: up 27% But there have been surprising pockets of strength in other cyclical sectors, particularly transports, where airlines have been outperforming most of the market. Transports (since July 1) Avis Budget : up 27% J.B. Hunt : up 19% American Airlines: up 18% Alaska Airlines: up 16% Delta Air Lines: up 16% Big, boring global industrials, which get much of their revenues outside the United States, have also been strong. Industrials (since July 1) Ingersoll Rand : up 19% General Electric : up 18% Eaton: up 17% Johnson Controls: up 15% Illinois Tool Works: up 15% Cars and housing have been bouncing back, and it’s not just Tesla (up 29% this quarter); the old-school car makers are doing better as well. Cars/Housing (since July 1) Ford Motor : up 42% General Motors : up 18% Lennar: up 22% D.R. Horton: up 17% Given Micron has followed Nvidia’s negative pre-announcement, watch for continuing signs of strength in these classic deep cyclicals as a sign for a counter bet on the strength of the consumer.
