MarketSurge powers the charts in this video.
AI stocks went parabolic in the first half of the week. They gapped up on Thursday and that was it. What followed was a quick pullback in NVDA, SMCI, DELL, MU, SOXL, etc. It’s normal to see leaders test their rising 10 or 20-day moving averages.
The decline in semis coincided with a rise in other sectors.
The biotech ETF, XBI bounced near its 50-day moving average, led by GILD, RNA, and SRPT among others.
Retailers also perked up. AMZN bounced. Stocks like DKS and BURL are setting up for a potential breakout near their 52-week highs.
Internet and software have been in the penalty box for most of 2024, yet GOOGL and MSFT are near their all-time highs. So is GWRE, META is acting constructively above its rising 20-day moving average, and if it clears 504, it could try to test its all-time highs. ESTC is hanging right at its rising 20dEMA.
Such sector rotations are typical for bull markets – money doesn’t leave; it just moves to a different group of stocks. We will probably see more of the same even if the large-cap indexes, SPY and QQQ pull back towards their 20-day moving average.
I recently published a few children’s books. Check them out if you have kids or friends who have kids: Investing for babies, Trading for babies, Meditation for babies. You can find my other trading books on Amazon here.
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.
Disclaimer: Everything I share is for educational and informational purposes only and it should not be considered financial advice. Read my full disclaimer here.
