Category: Uncategorized

MarketSurge powers the charts in this video.

As expected, the Fed cut the overnight rate again by 25bps. The biggest winners were gold and silver miners. It is the market’s way of saying that maybe the higher-than-average inflation problem is not likely to be resolved any time soon, as government deficits continue to balloon. We saw a big rotation – out of big tech and into small caps. Russell 2k broke out from a multi-month base to new multi-year highs. Big tech lagged, dragged by worse-than-expected earnings results from Oracle and Broadcom. 

Volatility and choppiness have increased substantially lately. Most AI-related stocks are under severe pressure and are easily giving back gains – CEG, APH, VRT, NVDA, CRDO, GEV, etc. JPM had a big drop during the week after warning of higher expected expenses in 2026 due to a fragile consumer environment. It quickly recovered the decline by the end of the week as the financial sector made new all-time highs.

SpaceX IPO chatter sparked interest in space stocks. They were among the best performers last week and continue to look constructive – ECHO, ASTS, RKLB, PL.

Cannabis stocks also had a strong week on rumors that Trump might reclassify marijuana. VFF has the most constructive chart in the space.

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MarketSurge powers the charts in this video.

TSLA and PLTR are back above their 50-day moving average. NVDA is holding its rising 20-week moving average. Even META had a big bounce after announcing that they plan to slash expenses for their Metaverse initiative by 30%. Bitcoin and Ethereum also found some support and are potentially working on a higher low. The small-cap index is back near its 52-week highs. The dips were bought again. This is what happens in bull markets.

In the meantime, the highly-shorted speculative groups are bouncing back – you know the ones that doubled and tripled in September and then dropped 50% in October and November – nuclear, rare earth metals, quantum computing, space. The trouble with many of those stocks is that they are so starved for cash that they are using every little bounce to raise more money and dilute current shareholders. I view them strictly as short-term trading vehicles. 

There’s an appetite for risk, but it might be tapered, at least temporarily, next week. The Fed will announce its latest decision on rates on December 10th. Previously, we would see a drop in rates ahead of a Fed meeting as the market anticipated a cut. The market is not so sure this time. Rates have been rallying. If there’s no cut this time, we might see a short-term pullback. 

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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.

MarketSurge powers the charts in this video.

Last weekend, we observed that the main indexes managed to close above their 20-week moving averages. They followed through and had five consecutive green days. The good mood is back. People are getting excited about a “Santa Claus rally” in December. 

NVDA and PLTR were the undisputed leaders in 2023, 2024, and the first half of 2025. This hasn’t been the case lately. Unlike the Nasdaq 100, both remain firmly below their 50-day moving averages and show notable relative weakness lately. There are new leaders in town – GOOGL and AVGO. The AI data centers component stocks have also recovered relatively quickly and are looking to continue to outperform – some examples include MU, COHR, CRDO, CLS, and VRT.

In the meantime, biotech continues to fly, lifting the small-cap index with it. Small caps outperforming is one of the main risk-on signs. Besides, if a negative reaction to NVDA’s earnings and accusations of creative accounting cannot bring the market down, I don’t know what can, at least for the time being. 

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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.