Ivanhoff Capital

MarketSurge powers the charts in this video.

Bull markets correct through sector rotations. This is exactly what we saw last week. While the semiconductor leaders pulled back to consolidate recent gains, other sectors bounced. 

It has become typical for financials to rally ahead of earnings and then sell off after the reports. Can we see a repeat?

Software and Internet stocks had a big week led by Google, Amazon, Meta, and Datadog.

The PCE inflation came within estimates last Friday – 2.6% year over year. Small caps gapped up on the news but then tapered. They continue to underperform significantly. Unless interest rates really crash, this is not likely to change.

There are many eyes on biotech. If XBI manages to go above 95, we might see another rotation. 

Overall, it has been a choppy tape to trade lately. Many of the breakouts would last one, maybe two days, and then they would fizzle and reverse. There have been great opportunities but you had to be fast to take advantage of them because they didn’t last long. 

I recently published a few children’s books. Check them out if you have kids or friends who have kids: Investing for babies, Trading for babies, Meditation for babies. You can find my other trading books on Amazon here.

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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.

AI stocks went parabolic in the first half of the week. They gapped up on Thursday and that was it. What followed was a quick pullback in NVDA, SMCI, DELL, MU, SOXL, etc. It’s normal to see leaders test their rising 10 or 20-day moving averages.

The decline in semis coincided with a rise in other sectors. 

The biotech ETF, XBI bounced near its 50-day moving average, led by GILD, RNA, and SRPT among others. 

Retailers also perked up. AMZN bounced. Stocks like DKS and BURL are setting up for a potential breakout near their 52-week highs. 

Internet and software have been in the penalty box for most of 2024, yet GOOGL and MSFT are near their all-time highs. So is GWRE, META is acting constructively above its rising 20-day moving average, and if it clears 504, it could try to test its all-time highs. ESTC is hanging right at its rising 20dEMA.

Such sector rotations are typical for bull markets – money doesn’t leave; it just moves to a different group of stocks. We will probably see more of the same even if the large-cap indexes, SPY and QQQ pull back towards their 20-day moving average.

I recently published a few children’s books. Check them out if you have kids or friends who have kids: Investing for babies, Trading for babies, Meditation for babies. You can find my other trading books on Amazon here.

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.

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.

The stock market is bifurcated. While small caps Rusell 2k is flat for the year, the Nasdaq 100 is at all-time highs and up 17%. 

Most stocks related to AI continue to shine. 

NVDA is at the center of it. It is up 900% since January of 2023 and keeps making new all-time highs. The winner is taking it all because Nvidia’s competitors, AMD and Intel are falling way behind.

AI server stock, HPE made new all-time highs last week. The other stocks in the space have also done well. DELL sold off after their last earnings report and it is starting to hold near its 50dma – it could be a potential stage for a bounce if the market remains stable. SMCI had a big jump last week and it is setting up for a potential test of 900.

AVGO crushed earnings estimates and made new all-time highs. ANET moves in sympathy and it is also there. ARM and QCOM are also near all-time highs.

AI data centers need memory. MU is at all-time highs. They also need transistors – COHR is at 52-week highs and probably headed for all-time highs at some point.

Cybersecurity is likely to be the biggest threat and opportunity with AI. CRWD is at all-time highs. PANW and CYBR are setting up for potential breakouts.

Amazon, Google, Microsoft, and Meta are at the forefront of AI. All of them are near all-time highs. Even Apple woke up and had one of its best weeks. 

The market remains excited about anything AI-related. The dips in those names continue to get bought. Lately, there haven’t been many dips to buy. Mostly straight-up action in the AI space. It remains to be seen if anything will change because the rest of the market is not having a great time right now. It’s a market of stocks environment.

I recently published a few children’s books. Check them out if you have kids or friends who have kids: Investing for babies, Trading for babies, Meditation for babies. You can find my other trading books on Amazon here.

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.

I published a new trading book recently (2023). Check it out on Amazon.

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