MarketSurge powers the charts in this video.
TSLA and PLTR are back above their 50-day moving average. NVDA is holding its rising 20-week moving average. Even META had a big bounce after announcing that they plan to slash expenses for their Metaverse initiative by 30%. Bitcoin and Ethereum also found some support and are potentially working on a higher low. The small-cap index is back near its 52-week highs. The dips were bought again. This is what happens in bull markets.
In the meantime, the highly-shorted speculative groups are bouncing back – you know the ones that doubled and tripled in September and then dropped 50% in October and November – nuclear, rare earth metals, quantum computing, space. The trouble with many of those stocks is that they are so starved for cash that they are using every little bounce to raise more money and dilute current shareholders. I view them strictly as short-term trading vehicles.
There’s an appetite for risk, but it might be tapered, at least temporarily, next week. The Fed will announce its latest decision on rates on December 10th. Previously, we would see a drop in rates ahead of a Fed meeting as the market anticipated a cut. The market is not so sure this time. Rates have been rallying. If there’s no cut this time, we might see a short-term pullback.
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