The financial media are calling this recent market run a “skinny bull.”

In case you missed it…

In the face of rising interest rates… and recession worries… and bank failures… the S&P 500 has now increased by 20% from its October 2022 lows.

On the surface, that sounds great.

But, as impressive as it is, a look under the hood tells you a very different story.

And that story is…

The entire gain on the S&P 500 this year has been carried by just seven technology companies.

That’s why today’s market is being called a “skinny bull.”

There are two ways to think about this…

• “Glass Half Full” Approach: Since the S&P’s gains have been driven by so few stocks, the rest of the market could experience a “catch-up” effect… which would extend the bull market for the remainder of the year.
• “Glass Half Empty” Approach: Since the S&P’s gains have been driven by so few stocks, there are only seven strong companies out there… and the rest are weak. As soon as those seven exhaust their upside, the market will head lower.

Conclusion: No matter what happens, one thing is certain: Market volatility is here to stay.

And this leads directly into today’s new play…

You see, in addition to the seven major tech stocks leading the S&P 500 upward, there’s another stock that’s been performing very well in 2023…

Formula One Group (FWONA).

A subsidiary of Liberty Media, Formula One Class A shares are up more than 20% year to date – partly due to Formula One racing seeing a resurgence in popularity due to the Netflix docuseries Formula 1: Drive to Survive.

Here’s a quick overview…

Formula One Group engages in motorsports in the United States and internationally. It owns the commercial rights for the World Championship, which is a nine-month-long motor-race-based competition in which teams compete for the Constructors’ Championship and drivers compete for the Drivers’ Championship.

The interesting thing here is that the season is far longer than a normal sports season – which keeps fans engaged over a longer period of time.

NBC just reported that “Formula 1 popularity [is exploding] in U.S. as 2023 season begins.” The 2023 season will be highlighted by three U.S. races, including one at a new track along the Las Vegas Strip.

The 2022 season became the first in U.S. television history to average at least 1 million viewers per race, and in 2021, F1 reported a global TV audience of 1.55 billion.

Often compared to NASCAR, Formula One is more global. Most NASCAR races occur in the Americas, but F1 takes place at various locations worldwide.

YOUR ACTION PLAN

While tech stocks are getting all the attention, Formula One Group (Nasdaq: FWONA) represents an undiscovered growth play that could continue moving higher. To get my exact entry point, click HERE to sign up for Trade of the Day Plus, where I’ll give you a full rundown this Wednesday.

Speaking of exact entry points, I just posted a new video that reveals something extraordinary…

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When it comes to bold claims (that are fully backed up by verifiable research), it doesn’t get any better than this.

As you’ll see, I’ll tell you exactly why my newest pick could soon become the “Next Major American Index.”

Do yourself a favor… and check out the 1:37 mark of the video.

MONDAY MARKET MINUTE

• Central Bank Expected to Hold Rates on Wednesday. Policymakers on the Federal Open Market Committee (FOMC) are widely expected to skip a rate hike on Wednesday and keep the target federal funds rate at a range of 5% to 5.25%. This “hawkish hold” scenario does not indicate that the FOMC is done raising rates – the committee is expected to emphasize the potential for further interest rate increases. For now, it just needs more time to assess the impact of previous rate hikes before making its next move. Tracking.
• Biogen (BIIB) Gets FDA Approval. BIIB was up 2% in premarket trading after Biogen and Eisai (ESAIY) announced that an FDA advisory committee voted unanimously that the data from Eisai’s Phase 3 clinical trial confirms the clinical benefit of the drug Leqembi for the treatment of Alzheimer’s disease.
• XPeng (XPEV) Orders Ramp Up. The Chinese automaker stock was up 9% in premarket trading after announcing over 25,000 presale orders for its G6 model in China in the first 72 hours of availability.
• SoFi Technologies (SOFI) Receives Upgrade. Truist analyst Andrew Jeffrey raised the firm’s price target on SoFi Technologies from $8 to $11 and maintained a “Buy” rating on the shares.