Momentum Monday – Software Continues to Lead

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What are the major traits of a strong market:

  • Constant sector rotation;
  • The dips are getting bought;
  • Breakouts are following through;
  • Good news gets a positive market reaction;
  • Bad news doesn’t get a negative market reaction;
  • Relatively low correlation and volatility;
  • A wide-encompassing index like the Nasdaq Composite is trading above its rising 20, 50, and 200-day moving averages;
  • More accumulation than distribution days signifying that institutions continue to support the market and put money to work.

The current market has met most of the above mentioned for the past month or so. What changed last week? Just a few things: Volatility picked up, the daily ranges became wider, some stocks had failed breakouts and failed breakdowns. Nothing else has really changed. The market continues to shrug bad news off and the dips are still getting bought. Software stocks continue to lead while the market is correcting through short-term sector rotations. Overall, the tone remains bullish but the increase in volatility, reversals, and daily ranges might be a sign that the indexes have entered a range-bound consolidation pattern for the time being.

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PERFORMANCE

Here’s a Google spreadsheet tracking all closed option and stock ideas shared on my private Twitter stream and emails for subscribers.

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Momentum Monday – The Dips Are Still Getting Bought

The charts in this video are powered by MarketSmith

The bad news keeps coming, the market keeps rising. Less than two years ago, the mere mention of more tariffs on China was enough to send the market in a tailspin. Now, they want to delist Chinese stocks from the U.S. stock exchanges and the Nasdaq 100 is within 3.5% of its all-time highs.

Biotech and software stocks have been on absolute fire – squeezing naive short-sellers who are trying to trade rationally in an irrational market. Stocks can still go higher as the current mentality is to buy the dip and mentality doesn’t change overnight. What typically changes are the market leaders as rising markets often digest gains through sector rotation.

Try my new subscription service which includes a private Twitter feed with option and stock ideas, emails with concise market commentary and actionable swing and position trade ideas, the Momentum 50 list of market leaders, and much more. See some of the recent testimonials.

PERFORMANCE

Here’s a Google spreadsheet tracking all closed option and stock ideas shared on my private Twitter stream and emails for subscribers.

Check out my free weekly email. to get an idea of the content I share with members.

Testimonials for Ivanhoff Trades

“Ivan,
First off, I want to thank you for the premium service you provide. I know enough that there is a lot of money to be made right now with options, but, I also know if I tried to do it alone I’d likely get blown apart. Your service has been extremely successful and educational. Thank you for that. In less than 7 trading days I’ve made significant money and I have been more so practicing position sizing, starting very small as I get a feel for the service.
Quick story – one of my first decent size trades following you was the TWTR calls last week. Shortly after entering the trade, news hit the markets the Moderna vaccine wasn’t effective and markets just tanked into close. The whole time I am a little nervous and expecting you to tweet how you’ve reduced risk, cut losses, etc…Nope. You’re stone cold into close, barely phased, you  briefly commented on the Moderna news after market, and BOOM, shortly after market opens the next morning those TWTR calls were double the entry value….It might be the amateur in me, but I was impressed. 
Anyhow, thanks again. Really appreciate what you’re doing. Please let me know if there is anyway I can assist. – Mac D., May 26, 2020

“I paid u $99/month to basically try out your service. After 2.5 weeks, I made $4,500 taking small positions. I am thankful for the simplicity of your service.
Do u have an annual or lifetime discount on your service as I am now convinced of the efficacy of your service and if there is a longer-term subscription model to your service, I would like to take advantage of that.” – A. G., May 21, 2020

“Ivan – just want to tell you how awesome the new service is. I’ve been with you a long time, and i just love it. Educational and the best part is you don’t give you too many selections/ ideas. The hardest part of other services i have used is that they give out so many ideas/ trades that an average person can’t really take all of them and of course it seems like you miss all the good ones and take all the crap.” – Josh L. , April 29, 2020

“Just did a monthly review. My net swing trading cash position is up $13.4K for April. Excellent return on your premium service. Thanks for the hard work and excellent investing insights. Excited for 2020 trading! ”    – R. C., April 20, 2020

“That $NUGT paid your cost for 3 years! Thank you!” – Jon W., April 14, 2020

“Thank you for another profitable week! Thanks for letting me be a part. You are helping me change my financial future!!! “- J.C., April 2020.

“I have been following you (and Howard) on the Momentum Monday for a while now and lately have been part of your Ivanhoff Capital group. My first month has almost come to its end and I’m very satisfied with the result. I was wondering if I could change my subscription for a yearly subscription instead of my test subscription of 1 month. It has been interesting and rewarding to follow your instructions.

Attached in this mail my portfolio of the past month, just to show you your good work. (even though I’m sure you already know it) You almost got me out of my negative trend due to this latest “crash”. I’m sure next month I will be on the positive side, if I keep following your advice.” – M. H., April 2020

Disclaimer: Past performance is not a guarantee of future results. Everything I share is for informational and educational purposes and it should not be considered official financial advice.