MSTR, HOOD, RIOT Stocks Lead Gains In Fundstrat's Granny Shots ETF Last Week, Says Tom Lee

Lee said the Fed’s September rate hike left stocks oversold, setting the stage for a potential rebound.

• MSTR and HOOD ranked among GRNY’s top five performers last week.
• RIOT was one of the top five performers in Fundstrat’s GRNJ ETF.
• Lee grouped the crypto stocks with AI-related trades in Fundstrat’s portfolios.

Strategy (MSTR) and Robinhood (HOOD) were among the top five performers in Fundstrat's large-cap Granny Shots ETF (GRNY) over the past week, Fundstrat Chief Investment Officer Tom Lee said in a weekly update on Tuesday. 

Among the top five performers in Fundstrat’s mid-cap Granny Shots ETF (GRNJ) were Riot Platforms (RIOT) and biotech names, Lee added. He grouped the crypto-related names alongside AI-related trades.

MSTR stock slid 0.33% during midday trading. On Stocktwits, the retail sentiment around MSTR remained in the ‘bullish’ zone amid high chatter. 

On the other hand, HOOD stock was up over 0.3% during midday trade. On Stocktwits, retail sentiment around HOOD remained in the ‘bullish’ zone.

RIOT stock was up over 2%. On Stocktwits, retail sentiment around RIOT improved to ‘bullish’ from the ‘neutral’ zone amid high chatter. 

GRNY Outpaces S&P 500 In Weekly Performance But Trails Russell 2500 YTD

Fundstrat Granny Shots US Large Cap ETF is up 0.35% in the past week against a flat S&P 500 (SPX), or up about 40 basis points, said Lee. The fund is up 12.77% year-to-date, compared with 12.71% for the S&P 500. 

The fund was down 0.57% over the past week, compared with a 1.39% decline for the Russell 2500, a roughly 82-basis-point outperformance. On a year-to-date basis, Fundstrat Granny Shots US Small- & Mid-Cap ETF (GRNJ) is up 13.5%, compared with 17.3% for the Russell 2500, a roughly 378-basis-point underperformance, Lee added.

Fed Rate Hike Impact

One of the fund’s weakest sectors last week was financials, which Lee blamed on the Federal Reserve’s interest rate hike. 

Lee said the broader market is still "digesting" the Fed's September rate hike, its first in three years, and that the subsequent retreat has left stocks oversold. He believes the setup will favor a rise rather than more decline, citing a similar pattern in August that preceded a market breakout.

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