Ivanhoff Capital

MarketSurge powers the charts in this video.

Last week began with a big downside gap in anything AI-related after comments from Anthropic’s, OpenAI’s, and SpaceX’s CEOs that the progress in AI should probably slow down because of safety concerns. Those gaps were quickly bought and erased by the end of the week. In many cases, some of the AI stocks even had a strong green week – DELL, AMD, SNDK, MU.

Software, on the other hand, started the week with a big breakout, followed by sideways consolidation. Cybersecurity led the way – CRWD, NET, FTNT, ZS, PANW, OKTA.

Crypto had its mid-week shakeout. First, the Clarity Act didn’t pass the House. Then, the Fed raised rates on Wednesday. By Friday, all major crypto assets and stock proxies were back near their multi-week highs – ETHA, IBIT, SOLZ, ZCSH, PURR, MSTR, COIN, HOOD, etc. The SEC rolled out a 5-year exemption for tokenized stock trading, which lit up the entire space.

From a big-picture perspective, small caps keep losing ground. Russell 2k is not far from testing its 200dma. Large and mega caps continue to show incredible resilience and keep the indexes afloat. Going higher on bad news (rate hikes) is typically bullish, especially if we see follow-through next week. The volatility is likely to remain elevated ahead of the Midterm elections. The results from them can have a significant impact on who the next leaders are. A democratic sweep will probably put many AI-related stocks under pressure, as it would make the development and operation of data centers more tightly regulated.

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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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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.

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.