Welcome Friends, 

Here’s an assortment of posts shared this week on Trends with Friends. Let’s dive in…

ABOVE THE CLOUDS

Howard Lindzon is concluding his summer vacation in Nice, France enjoying the Final Stage of the Tour de France. 

He shares a bucket list experience climbing Mont Ventoux, 

Mont Ventoux is just a 40 minute drive from Gordes and a few of my friends (Michael and Roy) were vacationing nearby and said we have to do the ride. Michael had done it a few times (he is 64). I was warned it was brutal and I am not in the best cycling shape, but it is a legendary climb and so of course it was on… 

Above The Clouds – Mont Ventoux

Read Howard’s full post here.

THIS WEEK IN AI

Michael Parekh provides a concise overview as to the latest developments in AI. This week, Michael covers — Google, OpenAI’s mini-update, Meta, semiconductors’ struggles and more. 

Stay up to date with AI here.

UNITEDHEALTH’S NEW HIGH

Do new highs in the Dow indicate bearish behavior? JC Parets points to UnitedHealth’s multi-year breakout. 

JC writes, 

To be clear, we’re talking about the world’s most important stock market index here. And UnitedHealth represents over 8.5% of the entire Papa Dow.

Look at this chart. While people are telling you that the market is in a bubble, things are parabolic and this is unsustainable, the largest weighting of the most important stock market gauge hasn’t even done anything for years.

Until now…

Things are just starting to get going.

See Parets’ full post here.

SMALL-CAPS CARRY ON

Small-Caps continue to surge. Charlie Bilello’s Chart of the Day displays the Russell 2000’s largest 4-day outperformance relative to the S&P 500. 

Charlie comments, 

US Small Caps ($IWM ETF) are up 10.4% over the last 4 trading days while US Large Caps ($SPY ETF) are up 0.6%.

The 9.8% spread is 7 standard deviations above the mean and the largest 4-day Small Cap outperformance ever (note: data since inception of the first Small Cap ETF – $IWM – in May 2000).

After the 4-day surge higher, Small Caps are now up 12.5% on the year and within 4% of hitting a new all-time high.

DESIGNING PRODUCT

Ted Merz had lunch with Yvonne Caravia, Chief Product Officer at Lab49, and discussed integrating generative AI into financial systems and the importance of observing user behavior to design effective tech solutions.

Merz mentioned, 

Yvonne said the most effective approach when building a new application is to watch customers click and type and process information. Only with that can you suggest effective systems.

I had a similar experience at Bloomberg. I would visit clients purportedly to demo new functions, but actually to watch how they used the terminal.

Seeing how they looked up, say news on a company or topic, helped me understand what needed to be changed.

Read the full post here.

TOP CLICKS THIS WEEK

Tadas Viskanta curated the most clicked links of the week. Here’s a sneak peek…

TRENDS WITH NO FRIENDS

Trends With No Friends sifts through the noise and discovers stocks above $1B market cap with high relative strength and low social following.

The publication shares 52-Week Highs and Lows sorted by followers on Stocktwits. 

Why is high relative strength and low social following important?

Stocks that are outperforming tend to continue to outperform. Stocks that have a low social following are, by definition, undiscovered by the crowd. Stocks that have both Relative Strength and Low Social Following can really outperform as more investors discover them.

This week, Trends with No Friends featured… 

NCR Atleos ($NATL), Nicolet Bankshares ($NIC), CorVel ($CRVL), RXO ($RXO) and more.

THIS WEEK’S EPISODE

And in case you missed it… This week, Howard Lindzon, Phil Pearlman, JC Parets and Michael Parekh review the bull market, sector rotation, Robinhood, Goldman Sachs, the New York Times’ and more in the latest episode of Trends with Friends.

Tune in today.

GET IN TOUCH

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