Momentum Monday – Will The Negative Sentiment Acceleration Subside?

Howard Lindzon Howie Town

4 weeks ago

3 MIN READ

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.

Good morning…

Sir Ivanhoff covered the markets alone for this weeks show below.

Yesterday I shared my plan and last week was sharing what I was doing as well.

I woke early and joined Shay and Katie on Stocktwits Morning show to share some of my thoughts. You can watch here.

This morning I woke and saw that Robinhood had taken another giant leap into ‘degeneracy’ with the NCAA bracket betting. I look forward to trying it.

Now to Ivanhoff’s show below:

Welcome back to Momentum Monday!

In today’s episode of Momentum Monday, Ivanhoff and I discuss the following:

Current Market Corrections and Momentum Stocks Insights
Recent Stock Market Decline Analysis
Market Anticipation Before FOMC Meeting
Economic Uncertainty and Potential US Recession
Surge in Chinese Market: Analyzing Recent Trends
Partnership Between Apple and Chinese AI Companies

In This Episode, We Cover:

Current Market Corrections and Momentum Stocks Insights (0:00)
Recent Stock Market Decline Analysis (1:33)
Market Anticipation Before FOMC Meeting (3:13)
Economic Uncertainty and Potential US Recession (4:43)
Surge in Chinese Market: Analyzing Recent Trends (6:19)
Partnership Between Apple and Chinese AI Companies (7:43)

Here are Ivanhoff’s thoughts:

The S&P 500 and the Nasdaq Composite are down 8% and 11% since their all-time highs. This is nothing alarming. The average SPY’s annual drop is about 14%. And yet, the declines in momentum leaders have been substantial. TSLA is down 50% from its all-time highs. At some point last week, NVDA was down 30% but managed to recover ⅓ of that. PLTR is down 30%, HOOD -41%, APP and RDDT are down 44%. VST is down 40%, VRT – 44%. GOOGL, AMZN, AAPL, and MSFT are down about 20%. MSTR and COIN are down about 45% from their 52-week highs. These are numbers that you typically see after prolonged corrections. The current one is only four weeks old. The drop has been steep and quick as tariff wars threaten growth, employment, and inflation. Without the Fed stepping in or the White House providing more clarity on their economic policy, the market will probably get spooked even more. If I had to choose, I would rather see another leg lower because this would set up the foundation for an epic bull market later this year or maybe next year. The more likely scenario is that calmer heads will prevail and we will see some form of a rally.

In the meantime, gold broke out to new all-time highs. Gold miners ETF, GDX is close to making a new multi-year high. Chinese stocks continue to gain ground. Most of the momentum stocks setting up above their 50-day moving average are currently Chinese ADRs.