Jeff Mills on Fast Money

The week in review Under the surface recently is weakness is being masked by strong in tech stocks. On the S&P, less than half of stocks are trading below their 50-day moving average. So, it's not as broad as a market rally as we saw earlier this year. Even within tech we're seeing a bifurcation with the Nasdaq 100 names hitting fresh highs, but some of the Cathy Wood names not. This is no longer the rising tide lifting all boats kind of market. Investors are looking for fundamentals. Volatility will be present in coming months. Retail sales numbers today are encouraging. Spending is happening even as fiscal stimulus is waning. He still feels we're early in this bull market.

It reports on Monday and is up 40% since its last earnings report They pay a 4.7% dividend yield so there's some margin on safety. They are returning to revenue growth, gross margins are improving, and they boast solid free cash flow that could be invested in cloud, or A.I. that drives bottom-line growth. They have 18% growth in the cloud business. No, it's not a slam dunk, and there's still work to be done, but at 13x forward earnings and approaching $130/share (long-term support) you can take a chance on this.

The sticking point is that advertisers see before ROI on other platforms. Twitter has made strives, but not enough, and he's skeptical about Twitter's lofty 2023 revenue target. The sales-to-price is too high.

He likes the homebuilder correction; DHI is down 16% from its YTD highs to 7.5x forward earnings. Time to buy.

Tech stocks during this rotation Tech names are tradable now but only in the very short term: Facebook, Amazon, Apple, Spotify and Nvidia are at longer-term technical support and that's good. Last week, only 20% of big tech was trading above their 50-day moving average, usually meaning a tradable low signal. Bond sentiment is turning bearish, so rates could trade sideways for a bit, so you can play this oversold condition in tech tech trade. However, cyclicals will rule the day longer term especially in the summer with inflation fears.

You can trade this. An interesting name. Today, Draft Kings was up while traditional gambling like Penn Gaming was down. There'll be massive pent-up demand after this huge stimulus bill will fuel this name. During Superbowl, you couldn't even log into Draft Kings, when there was a 60%+ increase in online gambling. Also, more states are passing sports betting.

Last summer, Bogota Chow steakhouse sold 1,300 steaks a week way past their normal 500 after the first stimulus cheques were issued. Darden controls costs well and have a good, diverse range of brands. The valuation makes sense.

Companies will need to increase cybersecurity from attacks which are inevitable. Such stocks will benefit with a massive growth tailwind from this reality, including Palantir. PLTR has held well in recent weeks at support levels while similar SPAC names flagged.

Boeing vs. an airline stock? Airlines will give you the beta of increased airline travel given this reopening trade, but there's more upside in Boeing. His favourite airline, Southwest, is above pre-pandemic highs, for example.

They're the global leader in DNA sequencing. It's had a huge run though come back a bit. It enjoys long-term technical support.