MarketSurge powers the charts in this video.
We are in a bull market of almost everything. Stocks, US Dollar, Gold, Bitcoin. Even interest rates have been perking up since the last FOMC decision. I don’t know what’s the meaning behind this green wave. All I know is that there are uptrends and we have to find a way to enter with a tight stop and participate. This often means not chasing common breakouts but entering on a pullback near potential support.
The new earnings season has already begun. As usual, banks were the first major group to report. Most banks went higher and held their gains – GS, MS, BAC, WFC, JPM, etc. When was the last time this happened? In the previous few earnings seasons, we saw most banks giving back their gains.
The most important semiconductor company in the world, TSM also crushed earnings estimates and guided its fourth quarter higher. TSM gapped at new all-time highs where it stalled.
Intuitive Surgical (ISRG) and Netflix (NFLX) also beat earnings estimates and made new all-time highs. NFLX is up 30x since 2010. This is about 28% annual compounded return. ISRG is up 16x for the same time period. Incredible long-term performance even though it came with a lot of volatility and big drawdowns along the way.
The bottom line is that the major companies that reported, beat earnings estimates and went higher. So far, the only negative reaction has come from ASML, which dropped 15% and put pressure on the entire semiconductor space. They said that the only areas where they see strength in AI chips. Good news for Nvidia. This is why it continues to set up for a potential breakout near its all-time high of around 140. They remain the undisputed market leader. NVDA is up 850% since January 2023. NVDA is also up 166x since 2016. This is about 77% annual compounded return in the past nine years.
In the meantime, the US Presidential elections are knocking on the door. They typically bring extra volatility with them, before and after the event. I don’t know if it means anything, but gold keeps making new all-time highs and Bitcoin has also begun to rise again.
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