Retail feeding frenzy

[mattee2264]

  https://www.bloomberg.com/news/articles/2020-11-10/-frenzy-for-airline-stocks-spurs-dislocations-in-2-billion-etf

 

  I found this interesting regarding the JETS ETF. Record trading volumes. Record call option buying. Short interest now close to 0%. Briefly trading at a premium to NAV.

 

  Imagine similar things going on with a lot of other recovery plays people are piling into.

 

  I've noticed serious service interruptions on my retail brokerage website and apparentely this is the case for many other retail brokerages as well.

 

  I think a rotation into cyclicals is long overdue but wondering if this is a set up similar to the summer when on re-opening fever stock prices of sectors such as energy, airlines, real estate got way ahead of themselves and corrected significantly once the realization set in that the virus wasn't over and there was a long road to a full recovery.

 

  I'm not really interested in airlines but energy and tobacco and financials are also getting a lot of inflows and making big moves and it is much more comfortable to be investing when the crowd have lost interest and moved on to the next big trade. So I am trying to decide whether to wait for a pullback given the market has jumped 10% over the last week and over the last few days energy and financials are up around 20% and travel related names a lot more or whether to invest now before good values disappear altogether as momentum and FOMO kick in.