MarketSurge powers the charts in this video.
Last week, we saw another significant selloff in tech, led by AI-related stocks. AMD tested 200. NVDA tested 170. QQQ tested 600. Just when the tone was turning overly bearish, Micron (MU) came out with record earnings, margins, and guidance way above estimates, and everything AI went back higher. The lower-than-expected November inflation readings also helped, despite being massaged to fit the government narrative. Manipulated or not, what matters in the short term is the market reaction, as it reflects the current sentiment.
You can alter the inflation readings, but you cannot manipulate the price action in metals. Gold and silver are having one of their best years in history. Not only that, but industrial metals are also breaking out and setting up – platinum, copper, aluminium, steel, etc.
Space-related stocks are having a strong finish to the year. The rumours of SpaceX’s IPO have stirred speculation in the space – RKLB, ASTS, PL, BKSY, ATRO, ISSC, KTOS, ATI, etc.
The so-called Santa Claus rally is back on the map. By definition, it involved the last five and the first two trading days of the year. Small caps tend to benefit the most from this occurrence as people buy in anticipation of the so-called January effect.
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