Ivanhoff Capital

Three themes stood out last week: crypto rally, a bounce in AI-related stocks after a downside gap on Monday, and a breakout in cybersecurity stocks.

1. TEMT +69%, 2x long TEM. It quickly dipped below its 20EMA to shake people out. Then it formed a tight-range inside day, followed by a large bullish reversal candle that started a 4-day run to new swing highs.

2. FPSX +48%, 2x long FPS. Makes electrical distribution equipment for data centers. It rallied from its 52-week lows after beating earnings estimates and raising its 2027 guidance by 30%. 

3. MSTX +34%, 2x long MSTR. After a mid-week pullback, crypto rallied to finish the week strong.

4. CRWL +29%, 2x long CRWD. Last week began with a major breakout in cybersecurity stocks.

5. ZCSH +25%, Crypto.

6. SOLT +24%, 2x long Solana. Another crypto play.

7. KEEX +24%, 2x long KEEL. Develops and operates AI data centers.

8. BWET +20%. The best-performing ETF this year. It went from 20 to almost 900. It tracks the cost of shipping crude oil by sea via large tankers. The fund buys and owns freight futures.

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MarketSurge powers the charts in this video.

The market chop continues. Just as the AI universe was setting up for a potential breakout, the CEOs of Anthropic, OpenAI, and SpaceX suggested that progress should slow because AGI threatens humanity. OpenAI postponed its IPO for 2027. The market didn’t like the message, and anything AI-related gapped down, led by semiconductors. Capital didn’t rush to safety. It just rotated back into software. After a 2-week, 10% pullback, the software ETF, IGV, rallied 5% on heavy volume. The leaders came out of cybersecurity – CRWD, NET, OKTA, ZS, FTNT, etc. In a world of expanding AI influence and regulation, cybersecurity companies are viewed as the middlemen that can benefit.

My subscription service includes a Discord room and private X feed with options and stock ideas, emails with concise market commentary, real-time market education, the Momentum 40 list of market leaders, and much more. See what subscribers say about my educational service.

Check out my free weekly email to get an idea of the content I share with members. See how my ideas/alerts performed.

You can find my trading books on Amazon here.

Disclaimer: Everything I share is for educational and informational purposes only, and it should not be considered financial advice. Read my full disclaimer here.

MarketSurge powers the charts in this video.

Software stocks were looking strong coming into last week. Then, there was a rug pull, and most of them pulled back. Even strong earnings gaps like SNOW faded. Nothing is immune to the current chop in the market.

After a brief sideways consolidation, crypto broke out again, lifting with it crypto-adjacent stocks like Robinhood (HOOD) and Circle (CRCL). 

The August jobs report came well above estimates, which increased the odds of a rate hike later this year. The Dollar rallied on the news; gold and crypto pulled back. Bitcoin, Ethereum, and Solana are still looking constructive. They might need more sideways consolidation before they attempt to break out again. The move last week was Dollar-related. They might need another catalyst for a more sustainable move. 

AI-related stocks finally benefited from the constant sector rotation. DELL, SNDK, and MU broke out. Let’s see if this is not just another trap. There will likely be some enthusiasm ahead of Anthropic’s IPO, and we will see some outsized moves in AI stocks in anticipation. Most of them are still technically broken. I view them as short-term trading opportunities, not as potential multi-week and multi-month holdings.

Overall, the indexes are holding relatively well for a seasonally weak period like September in a midterm election year. 

My subscription service includes a Discord room and private X feed with options and stock ideas, emails with concise market commentary, real-time market education, the Momentum 40 list of market leaders, and much more. See what subscribers say about my educational service.

Check out my free weekly email to get an idea of the content I share with members. See how my ideas/alerts performed.

You can find my trading books on Amazon here.

Disclaimer: Everything I share is for educational and informational purposes only, and it should not be considered financial advice. Read my full disclaimer here.