MarketSurge powers the charts in this video.
The main US stock indexes have almost recovered their losses from earlier this year. QQQ is 2% from its all-time high. SPY is 2.3% away. Inflation and unemployment are low. Scary headlines have led to minor dips that have been bought quickly.
Select price leaders lost momentum last week – quite a few failed breakout attempts and bearish reversals: PLTR, TSLA, MELI, SE, SFM, HIMS, CRWV, CRWD, GDX, ETHUSD, BTCUSD, etc. This is not ideal, but it is also not unusual. Bull markets correct through sector rotation. The pullback in one group of stocks leads to the bounce in another. We finally saw small and mid-caps to outperform – aerospace (ASTS, LUNR), robotics (SERV, PDYN), home services (PRCH), finance (DAVE, SEZL, AFRM, TOST, SOFI, IBKR), and drones (RCAT, DRS, KTOS, AVAV, ACHR).
In the meantime, China and the US announced that they are ready to talk about a potential trade deal. Maybe, this is why e-tailers like AMZN and SHOP are already perking up in anticipation of a favorable tariff resolution. A potential deal would also be positive for semiconductors – NVDA, SOXL.
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