A short-term shake out is likely heading into August, says BTIG's Jonathan Krinsky

Market Analysis - BTIG observes signs of froth in the market, particularly in meme stocks and high social media engagement names [1][4] - NASDAQ 100 is experiencing a long streak without a pullback, nearing a historical record, but this isn't necessarily indicative of a major top [2][3] - A short-term market shakeout is probable heading into August due to seasonality [4] Specific Stock/Index Observations - The "Buzzz" index, tracking stocks with high social media engagement, has increased by 63% in the last 15 weeks [5] - The "Buzzz" index's current stretch above its 200-day moving average is comparable to the 2020-2021 frenzy period [5] - Utilities are showing potential for a breakout, indicating a possible defensive market rotation [6][7] - Kweb (China tech) is another area worth watching for potential rotation from US tech [6][8] Investment Strategy - BTIG suggests that a pullback in frothy market areas could lead to a rotation into utilities [7] - Sideways movement in utilities and Kweb since last fall presents a favorable entry point [7]