Category: Momentum Mondays

The charts on Momentum Monday are powered by MarketSmith

The S&P 500 is back to the 290-300 level that has been acting as resistance several times in the past couple of years. What can be the catalyst that can push it above 300?

Already low interest rates coupled with relaxed Fed can be a recipe for appreciation in multiple assets – stocks, gold, crypto, bonds are all breaking out and trading near multi-year highs while the U.S. Dollar is starting to crack.

We continue to see mostly constructive price action in various sectors and market capitalizations. Even mega-caps that had significant pullbacks earlier this year like FB and BA are setting up above their 50-day moving averages.

We also covered the current price setups in AVLR, CMG, AAXN and other.

P.S. Check out my last two trading books. Both are super practical, packed with actionable information that can be put to use right away:

Swing Trading with options – How to Trade Big Trends for Big Profits

Top 10 Trading Setups – How to find them, how to trade them, how to make money with them.

The charts on Momentum Monday are powered by MarketSmith

After an explosive rally in early June, all major U.S. stock market indexes are in consolidation mode. Most software momentum stocks are also either pulling back on light volume or going sideways. This is normal and typically bullish market development.

The IPO market continues to be on fire. Last week, we saw hot action in FVRR, CRWD, even CHUY.

Many biotech stocks are also breaking out or setting up for a potential breakout – VCYT, VYGR, ARRY.

Disney is on the radar of many traders and investors. It has managed to hold its big gap from April and it is now back near its all-time highs.

In the last third of the show, we discussed some of the differences between swing trading and long-term holding and how to pick potential big winners that can be held for years.

P.S. Check out my last two trading books. Both are super practical, packed with actionable information that can be put to use right away:

Swing Trading with options – How to Trade Big Trends for Big Profits

Top 10 Trading Setups – How to find them, how to trade them, how to make money with them.

The charts on Momentum Monday are powered by MarketSmith

The last standing industry group – enterprise software, was hit hard last Monday Monday, which basically marked the lows. Just when everyone was turning bearish and one of the best money managers of our times – Stanley Druckenmiller appeared on CNBC to tell us that he sold all his stocks when Trump tweeted about new tariffs in early May, we saw a face-ripping rally.

Most momentum software stocks had a 20-30% intra-week price range. Look at the price action in COUP, MDB, OKTA, TWLO, AYX, SHOP, TTD,  etc. Whatever new or old short sellers were hanging out in those names, were squeezed out of their positions.

After epic rallies last week, most software stocks are technically extended. Unless you are a skilled intraday trader, it makes no sense to chase them here from a risk-to-reward point of view. The biotech sector is looking a lot more interesting with setups in TNDM, VCYT, ASND, and others.

P.S. Check out my last two trading books. Both are super practical, packed with actionable information that can be put to use right away:

Swing Trading with options – How to Trade Big Trends for Big Profits

Top 10 Trading Setups – How to find them, hot to trade them, hot to make money with them.