MarketSurge powers the charts in this video.
SPY recovered to new all-time highs as rates and the US Dollar pulled back in the last couple of weeks. Bitcoin is building a new base near its all-time highs. Most megacaps stocks are off to another strong start of the New Year. META, AMZN, and GOOGL made new all-time highs.
AI remains the hottest trading theme. The obvious plays like NVDA, ARM, AVGO, and MRVL have done well but their performance pales compared to energy-related plays like VST, CEG, GEV, OKLO, etc. The AI group is a bit extended. A normal pullback or consolidation through time would be normal.
In the meantime, Chinese stocks are also perking up. Trump hasn’t raised tariffs yet and the market is reading it as a potential opportunity for a constructive dialogue. Owning China comes with a big headline risk. There are plenty of other stocks to consider.
The next FOMC meeting is around the corner. It usually brings extra volatility. It caused a significant selloff in December, so the market might pull back in anticipation of another rug pull. If this happens, it will likely create better risk/reward entry points for longs.
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