Momentum Monday – No Complaints as Stocks Are Rotating
As a reminder, MarketSurge (by Investor’s Business Daily) is now a sponsor of the weekly show. All the charts you have been seeing in the videos and will continue to see are from MarketSurge. They are offering my readers 2 months for $59.95 – save $239. That’s 80% off the most powerful stock research platform for individual investors.
Happy Monday…
Because if travel and time zones, Ivanhoff did the show solo this week.
I am here in Spain for the week cycling by day and working at night.
Google was the big surprise last week, at least the price action after earnings. I am not buying this particular dip, but I am not really taking it seriously. Here is Google’s desktop web traffic share right now which including Youtube is bonkers…
Tesla has been drifting down – maybe because of Elon’s antics – or maybe just rotation while China rallies. The Chinese electric car maker BYD is breaking out to all-time highs.
Here is the show…
Welcome back to Momentum Monday!
In today’s episode of Momentum Monday, Ivanhoff and I discuss the following:
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Momentum Monday: Market Highlights and Analysis
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Market Reactions to Mega Cap Earnings
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Understanding Institutional Selling in Tech Stocks
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Robinhood’s Potential as a Leading Financial Service
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Bitcoin and the Market Trends
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Investing Risks in Chinese Markets
Reminder: Riley on my team created the ‘Trends With No Friends’ email which is my go to list every day to track what is working and what is not. You can get it for free here.
In This Episode, We Cover:
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Momentum Monday: Market Highlights and Analysis (0:00)
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Market Reactions to Mega Cap Earnings (3:25)
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Understanding Institutional Selling in Tech Stocks (6:30)
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Robinhood’s Potential as a Leading Financial Service (9:36)
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Bitcoin and the Market Trends (12:49)
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Investing Risks in Chinese Markets (16:04)
Here are Ivanhoff’s thoughts:
It’s a miracle that the large-cap indexes are still near their all-time highs considering the bearish earnings reaction to most of Big Tech reports this quarter. Only META went up. AMZN, GOOGL, TSLA, AAPL, and MSFT sold off. NVDA hasn’t reported yet but it dived for a different reason.
Up until a few months ago, the complaint was that the market is driven by just a handful of big tech stocks and everything else is in the doldrums. Now we have the opposite situation. Everyone is overweight in Big Tech, which is underperforming so far this year. Most of the big gains are happening elsewhere – PLTR, HOOD, OKLO, TEM, GDXU, HIMS, NET, LEU, KC, DOCS, NET, SERV, SPOT, etc.
Remember that there are no safe stocks in a bear market, regardless of their prospects and current fundamentals. The stocks of the best companies in the world could correct 50% in a prolonged correction. 2022 is a good recent example. Luckily we are supposedly still in a bull market; a market of stocks environment where one has to be tactical and pick carefully our entries and exits. This is not a tape for the complacent though. If you forget to manage risk, trade too big, and don’t take your stops, you can experience a significant drawdown. Drawdowns come and go but the trick is to keep them small so we can compound our capital at a faster pace over time.
And here are the charts discussed:
PS – Here is the latest ‘Trends With No Friends’ which covers ‘new highs and new lows’ and measures the followers (friends) on Stocktwits versus the prices. Subscribe here.
