Market of Stocks

MarketSurge powers the charts in this video.

Most stocks are still in an uptrend. You still need to play the market smart. When stocks are up a few days in a row and then we have an upside gap, the odds are that this will be used for profit-taking and you might get the proverbial rug-pull if you chase. This is what we saw on Friday morning with the indexes. We saw a similar behavior in many popular stocks that gapped up after strong earnings this quarter – GOOGL, MSFT, to mention just a few.

In the meantime, the dips are getting bought. We are back to the “what’s bad for the economy might be good for the stock market: environment. It seems we have been in that same environment for a long time. It’s almost as if the market likes to play a contrarian role. Unemployment claims came above estimates last week. We saw an initial selloff in the pre-market which was quickly gobbled up to new highs. 

We are in a market of stocks environment. There’s something for both the bulls and the bears. 

Restaurant stocks are having their best period in a long time. One would think that rising minimum wage will impact their profitability but their earnings continue to grow. Look at SG, CMG, CAVA, TXRH, DPZ, WING. They are all extended right now if you are looking for a fresh swing.

After a brief consolidation, gold and gold miners broke out again. Other metal stocks are also looking appealing – FCX and TECK, for example, have built humongous bases.

The semiconductor space remains among the leaders. The biggest chip maker in the world, TSMC reported a 60% year-over-year and 20% month-over-month increase in sales for April. NVDA, QCOM, AVGO, and MU are among the constructively-looking setups in the space. 

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