MarketSurge powers the charts in this video.
In the scope of two weeks, the Nasdaq 100 went from breaking below its 50-day moving average on EU tariff threats to making new all-time highs back to dropping near its 50-day. In the meantime, former leaders like HOOD, SHOP, PLTR, APP, RDDT, and many others are getting pressured below their 200-day moving average. Volatility and divergences tend to increase at turning points.
The one trend that has persisted since last December is strength in semis and weakness in software. The thesis is that AI benefits the former and can harm the latter. This theme accelerated in January. Microsoft’s earnings took the software group down further. The semiconductor ETF, SMH, went more than 20% above its 50-day moving average, so it is normal to see a pullback in the following weeks.
The momentum high flyers that seem to defy gravity finally went parabolic. Silver, gold, memory chip, and space exploration stocks dived from their all-time highs, bringing extra havoc and opportunities:
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