Ivanhoff Capital

The charts in this video are powered by MarketSmith

The signs are all over the tape. Interest rates continue to spike. Soft and hard commodities haven’t been this strong in more than 15 years. The U.S. Dollar is in a downtrend. Stock markets around the world are in an uptrend led by small caps. It could be the new fiscal stimulus or the expectations for the Fed to remain accommodating for the foreseeable future or the vaccinations to end the virus sooner than most believe, but back-to-normal stocks continue to be on fire – airlines, hotels, travelling agencies, leisure stocks in general, oil & gas, financials, industrial metals like copper, nickel, steel, lithium, etc. In the meantime, many of the large and mega-cap stocks which are considered a sure thing in the long-term (AMZN, AAPL, MSFT, FB, NFLX, GOOGL, V, MA,  etc), are showing clear relative weakness. The narrative has changed at least for the time being. 

The stock market is often acting counter-intuitively. After all, who in his/her right mind would consider buying airlines that are still operating at half capacity and are dependent on government help and sell Apple and Amazon which are reporting record numbers? And yet, this is what is currently happening. The market is looking 6-12 months ahead and trying to discount a different story. The market doesn’t always end up being correct but between the process of discounting the future and the confirmation or rejection of it by reality, many stocks can go up 2-10x. This is why we pay attention to price action. The only things that change are the tickers of the leading stocks; their patterns remain the same.

Try my subscription service which includes a private Twitter feed with option and stock ideas, emails with concise market commentary and actionable swing, intraday, and position trade ideas, the Momentum 40 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.

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


The charts in this video are powered by MarketSmith

The same trends persist – the majority of stocks continue to edge higher; Interest rates too as inflation expectations are rising. The U.S. Dollar is still under pressure. Cryptocurrencies keep getting more popular. The only things that change often are the leading sectors. While some of the high-flyers (cannabis, 3D printing) pulled back last week, money rotated into semiconductors and software stocks. 

There are more SPACs, IPOs, secondary offerings. The supply is growing but the bull market is still intact. In fact, we saw a significant spike in speculative moves last week compared to the previous. It’s anyone’s guess how long it is going to last but when you have so many sectors making new highs and setting up for potential breakouts, it is better to stick on the long side. Granted, there have been the occasional hiccups lately – the number of false breakouts and intraday shakeouts have increased but this is a normal part of any bull market – bull markets correct through sector rotation.  

Quite a few sectors are setting up for potential breakouts: metals (XME), financials, (XLF), industrials (XLI), even the so called recovery industries like airlines and casinos are looking constructively.

Clean energy is still strong. It seems a different EV stock is popping up 20-30% every day of the week. It is certainly a sector with a lot of hot money and movement: TSLA, NIO, LI, GOEV, AYRO, FSR, etc. Solar also stocks continue to set up.

Try my subscription service which includes a private Twitter feed with option and stock ideas, emails with concise market commentary and actionable swing, intraday, and position trade ideas, the Momentum 40 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.

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


The charts in this video are powered by MarketSmith

Last week was a mirror image of the previous – the highly-shorted meme stocks crashed and the rest of the market went to the moon. There were so many  20-30% bounces in momentum stocks that pulled back to and below their 50-day moving averages in the previous 2 weeks. 

Sentiment was so gloomy entering last week that it seems for a moment we had forgotten that dips are buying opportunities in bull markets. Pullbacks to 20 and 50dmas are normal and even desired because they provide good risk/reward entry points and keep the FOMO (fear of missing out) in check. Such shakeouts are needed because they create anxiety and doubt. No trend can continue without skeptics because otherwise there would be no one left to buy.

There are currently so many underlying trends:

Try my subscription service which includes a private Twitter feed with option and stock ideas, emails with concise market commentary and actionable swing, intraday, and position trade ideas, the Momentum 40 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.

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