Momentum Monday – What Happens When The Fed Starts Cutting Rates
-
The Fed 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.
Welcome back to Momentum Monday!
In today’s episode of Momentum Monday, Ivanhoff and I discuss the following:
-
Market Near All-Time Highs
-
Interest Rate Cuts and Market Impact
-
Sector Rotations and AI Beneficiaries
-
NVIDIA’s Market Influence and Tech Sector Dynamics
-
Pre-Election Market Volatility and Final Thoughts
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:
-
Market Near All-Time Highs (0:00)
-
Interest Rate Cuts and Market Impact (1:51)
-
Sector Rotations and AI Beneficiaries (6:46)
-
NVIDIA’s Market Influence and Tech Sector Dynamics (10:31)
-
Pre-Election Market Volatility and Final Thoughts (16:01)
Here are Ivanhoff’s thoughts:
The US Dollar and interest rates continue to decline as the market expects the Fed to begin a series of cuts in September. The best-performing groups for the last week also reflect those anticipations – homebuilders, regional banks, biotech, REITs, Bitcoin, and small caps in general. In the meantime, tech mega-caps are showing relative weakness. This doesn’t mean they are short candidates. It means there are better opportunities elsewhere.
I screened for stocks priced above $7 with an average daily volume of 500k shares that gained at least 10% last week. 84 stocks met the criteria. Number one was Redfin (RDFN) which provides real estate information. The list is quite diverse – highly-shorted solar stocks like NOVA; mortgage companies like RKT; biotech like TNGX, VKTX, and TERN; homebuilders like TOL BLDR, recent IPOs like TEM, earnings breakouts like CAVA and ZM, regional banks – DPST, etc. There is a lot to choose from.
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.
