MarketSmith powers the charts in this video.
The tiny dip in mega caps was bought again. AMD and AAPL broke out. AMZN and TSLA are setting up for a potential breakout. NFLX might be ready to bounce if it clears 456-457. We saw Paramount and Warner Brothers rallying on Friday, so some of that momentum might impact Netflix as well early next week. MSFT is trying to bounce near its rising 20-day EMA. GOOGL had a huge day last Thursday after they revealed a video with the capabilities of their AI platform Gemini. Then it gave back some of its gains the next day on reports that some of the results might have been manipulated. We will know more next week. NVDA also bounced and it is back above its 20-day EMA. Going back above 480 will open a path for a test of 500. Above 505, it might attempt a run for 550.
Speculative, highly-shorted stocks remain the biggest movers. This is likely to remain the theme for the remainder of the year and early next year, as long as small caps continue to recover. Just look at the recent moves in AAOI, AFRM, IONQ, UPST. I highlighted those stocks at the very beginning of their 50-100% moves. CVNA has a short squeeze potential for the next week. Also, AEHR, IONQ, etc.
Let’s not forget there’s an FOMC meeting on Wednesday. The last one on Nov 1st kicked-started a huge rally. I wonder if this time, Powell will try to cool down market expectations about interest rate cuts next year. As always, what matters in the short-term is the market reaction; not the news.
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