«Noise or Noteworthy?»

Traders,

Have you noticed the slight change in character from growth stocks this week? The Ark Innovation ETF performed like a champ over the past two days on a relative basis. While retail companies took the S&P 500 into the abyss, ARKK and friends actually went up.

It’s a nice change of pace for an area that has been utterly destroyed. I picture a few clever shareholders in these beleaguered stocks quietly slathering honey all over Walmart and Target. Once bears caught wind of it, they bounded away from growth to feast on retail.

Well played, shareholders. Well played.

While there’s a chance this is noise and significant of nothing, I’d be lying if I didn’t say I wasn’t intrigued. Indeed, I’m optimistic that we may start to see the beaten-down names exhibit some relative strength while other stocks that haven’t gotten torpedoed yet take a turn. If you haven’t looked at the growth area lately for fear of vomiting from all the bloodshed, you might take another pass at them. Some are sporting double bottoms or making a go at overhead resistance.

Video of the Day: What is Growth Investing

Growth Investing is an investment strategy that is primarily focused on capital appreciation.

Growth investors look to invest in paper assets that they have reason to believe will rise in value, most often in what is called growth stocks—stocks issued by companies that exhibit above-average economic growth, i.e., companies whose earnings are expected to grow at an above-average rate compared to those of its industry.

Chart of the Day: Roblox Pops ($RBLX)

Roblox ($RBLX) is a prime example of a growth stock trying to bottom. The high volume rally coupled with an unwillingness to go back down while the rest of the market melted this week is encouraging.

Options Theory

The Walmart Stock Crash & Fading Fear

The bear has come to retail. Walmart & Target sounded the alarm this week that inflationary pressures were coming home to roost. Shares of both retail giants crashed following underwhelming earnings, suffering their largest single-session losses since 1987.

Today’s line up

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Cash Flow Club Replay

If you missed last night’s webinar with Coach Greg Holmes where he talked about Trade Entries or would like to watch it again, check it out here.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.

Women in Trading MasterMind Group 8:30 PM EST

Once a month we’ll be hosting a live webinar featuring Women In Trading with Coach Emily. Get in the game!

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