“The big institutions on balance, especially the mutual funds, can't go to cash, so they have to just rotate, and they want to rotate into other big liquid names. And that's where you get the Amgens and the Mercks and the Lillys moving up, because they're big and liquid. … People aren't going into Costco because they love Costco. They're going in there because they're selling off their Sandisk and their Microns and their ServiceNows.”
sputnikintelligence.com
The hosts were looking at defensive stocks holding up while tech and software sold off. Webster explains that the strength is fund rotation out of tech rather than enthusiasm for those companies.
…and then bounced up so it'll be interesting to see this wasn't the only one i can't think off the top of my head the other ones that recovered like this um but you want to see what happens afterwards in fact thing was fast did that happen like a several weeks back where it had a shakeout like that
yes that's what it looks like
so sometimes you get this knee-jerk reaction to the earnings and then it's like oh the big players go in there and say oh you know what the earnings really weren't that bad but then what happens afterwards it's not under serious accumulation but that's what you want to see with like a cheesecake and the other ones that got hit but then bounce back and let's go to like a slow pokey thing like a costco just talking about um that area this looks interesting but people aren't going in there because uh they love costco they're going in there because they're selling off their sand disk and their microns and their service nows and we've got to remember i know that i say this all the time but the big institutions on balance especially the mutual funds can't go to cash so they have to just rotate and they want to rotate into other big liquid names and that's where you get the amgens and the mercs and the lilies and stuff of moving up because they're big and liquid even though there might be some better smaller cap stocks in there but they can't move the needle like a big institution can't get size quickly so there's this um positive bias towards capitalization as well as liquidity and um we've been seeing that for years and…
that makes sense all right and then i did just quickly want to talk about uh ibit bitcoin here uh with a break today down a five percent it was pulling back to the 50-day moving average so and there was news around this i think what binance got hacked and i i thought the blockchain unhackable yeah…
well the way i read yeah the way i read this is it magnified the selling because that news event and i don't really know the details of of the hack and everything and and that was the first thing that i thought too that well it's supposed to be you know so secure and everything but hey you know…
now well said all right let's go to eBay this was our stock of the day today held up well this week after a touch of the 21 day line bounced off that level earnings did come out we We saw double digit growth on the top and bottom lines, but nothing too incredibly exciting. You know, it didn't have…