MarketSurge powers the charts in this video.
There have been no trade deals made, and there aren’t even any negotiations with China. Despite that, stocks have been rising. Someone is bidding. When we see stocks go up on bad news, we have to assume that people with inside information know what’s coming and are buying ahead of it.
There is a good chance this is just another bear market rally towards a declining 50 or 200dma. When the bear puts out honey, it’s usually a trap. And yet, Germany just closed at all-time highs. Some markets have recovered a lot faster than others:
Cybersecurity stocks showed notable relative strength during the March/April correction and were among the first ones to pop up above their 50-day moving average. Now, PLTR is only 10% away from its all-time high. CRWD is 7% away. ZS, OKTS, and RBRK are setting up for a potential breakout.
Bitcoin is back above its VWAP since the presidential elections, and it has pulled higher crypto-related stocks like MSTR and HOOD.
European financials ETF, EUFN, is at all-time highs. Indian bank stocks like IBN are consolidating near their all-time highs. Argentine bank stocks GGAL and BBAR are working on a new base. Mexico ETF, EWW, is at new 6-month highs.
QQQ and SPY finished the week above their volume-weighted average price since their all-time highs. The last time they tested that level in March, they sold off violently. Not this time. This is a change in character. If they can spend a day or two above that level, they are likely to test their declining 50-day moving average: about 480 for QQQ and 560 for SPY.
Try my subscription service which includes a private X feed with option 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. How my ideas/alerts did.
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.
