Category: Uncategorized

MarketSurge powers the charts in this video.

Last week started with a big upside gap after the US and China reached an agreement to significantly decrease tariffs while they negotiate a trade deal. Other deals are also on the horizon, while inflation is coming down, which has calmed the market down. Inside four weeks, market sentiment went from talking about deep recession and stagflation to believing that testing the all-time highs is inevitable. We’ve had a quick lockout V-shape recovery that has left even the biggest optimists surprised. 

The recent rally was led by the groups that were hit the hardest in March and early April – megacaps, semiconductors, and AI-related stocks. If it continues, most of those stocks are likely to close their DeepSeek gaps: NVDA, GEV, ALAB, MU, VRT, CLS, ARM, TSM, etc.

Most momentum leaders are quite extended from their 10 and 20-day moving averages, which makes them a difficult target to chase right now. This might change early next week. Moody’s downgraded the US debt rating on Friday, which caused an after-market selloff across the board. We will likely see a 1-2% gap down on Monday. This will be viewed as a buying opportunity. There are so many underinvested speculators and money managers that the first pullback to 10 or 20dma in momentum leaders is likely to get bought. Bull markets like to climb a wall of worry.  

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Disclaimer: Everything I share is for educational and informational purposes only and it should not be considered financial advice. Read my full disclaimer here.

Try my subscription service, which includes a Discord room and private X feed with options 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.

You can find my trading books on Amazon here.

Disclaimer: Everything I share is for educational and informational purposes only, and it should not be considered financial advice. Read my full disclaimer here.

MarketSurge powers the charts in this video.

Last week started with a big upside gap after the US and China reached an agreement to significantly decrease tariffs while they negotiate a trade deal. Other deals are also on the horizon, while inflation is coming down, which has calmed the market down. Inside four weeks, market sentiment went from talking about deep recession and stagflation to believing that testing the all-time highs is inevitable. We’ve had a quick lockout V-shape recovery that has left even the biggest optimists surprised. 

The recent rally was led by the groups that were hit the hardest in March and early April – megacaps, semiconductors, and AI-related stocks. If it continues, most of those stocks are likely to close their DeepSeek gaps: NVDA, GEV, ALAB, MU, VRT, CLS, ARM, TSM, etc.

Most momentum leaders are quite extended from their 10 and 20-day moving averages, which makes them a difficult target to chase right now. This might change early next week. Moody’s downgraded the US debt rating on Friday, which caused an after-market selloff across the board. We will likely see a 1-2% gap down on Monday. This will be viewed as a buying opportunity. There are so many underinvested speculators and money managers that the first pullback to 10 or 20dma in momentum leaders is likely to get bought. Bull markets like to climb a wall of worry.  

Try my subscription service, which includes a Discord room and private X feed with options 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.

You can find my trading books on Amazon here.

Disclaimer: Everything I share is for educational and informational purposes only and it should not be considered financial advice. Read my full disclaimer here.

MarketSurge powers the charts in this video.

We continue to see higher lows in the indexes are they consolidate near their 200-day moving average. Consolidating is certainly more bullish than immediately selling off. It is a testament of strength and eager dip buyers.

The first trade deal is a fact. It was with the UK, one of the few countries with which the US has a trade surplus. Nothing major has changed compared to last year, other than the 10% base tariff. The market has started to accept that while it is likely that current high tariffs will be reduced for many countries, they are not going away. This is why inflation expectations are rising. This is why gold and cryptocurrencies are getting a bid. 

The Fed kept interest rates at 4.5%, citing increasing uncertainty and potential for rising unemployment and inflation later this year. What is important is that the market didn’t sell off this week. It went higher. Rallying on bad news is a reflection of bullish sentiment. 

The biggest loser last week was the biotech sector. The new FDA Center for Biologic Evaluation and Research director’s appointment caused a major selloff in gene therapy stocks, which spilled over to the rest of biotech. I don’t know if this is a short-term hiccup, but the entire healthcare sector is looking vulnerable.

We remain in a market-of-stocks environment that offers something for everyone. There are plenty of stocks that broke out and are setting up. There are plenty of stocks that broke out and are looking weaker. 

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.

You can find my trading books on Amazon here.

Disclaimer: Everything I share is for educational and informational purposes only and it should not be considered financial advice. Read my full disclaimer here.