Momentum Monday – Rates Rising Are Something To Watch
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Welcome back to Momentum Monday!
In today’s episode of Momentum Monday, Ivanhoff and I discuss the following:
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Introduction & Reflections on 2024
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Wall of Worry and Market Optimism
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Indexes, Mega Caps, and Interest Rates
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Peace Trends, Tech Breakthroughs & Speculative Plays
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Private Markets vs. Public 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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Introduction & Reflections on 2024 (0:00)
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Wall of Worry and Market Optimism (2:00)
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Indexes, Mega Caps, and Interest Rates (5:00)
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Peace Trends, Tech Breakthroughs & Speculative Plays (10:00)
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Private Markets vs. Public Markets (17:00)
Here are Ivanhoff’s thoughts:
SPY and QQQ are getting all the headlines with closing at or near all-time highs, but the price action under the surface has been deteriorating. Micro, small, and mid-cap have been under pressure lately. Most high-momentum stocks (the ones that are up the most year to date) also had a sizable haircut last week. Maybe the reason is the rise in interest rates or people are taking profits but we are back to a market held by a few mega-cap stocks.
The big news came from Google last week. They announced a major breakthrough in quantum computing and the stock broke out new new all-time highs. Quantum computing stocks have been on fire in the last few months – IONQ, RGTI, QUBT, etc. Google reminded us that they are a major player in almost any cutting-edge industry nowadays – from AI to self-driving. What many missed to point out is that Google used Nvidia CUDA Q platform.
Yes, Nvidia is at the center of everything but it has been acting as a source of funds lately. It could not rally even on a strong earnings report from Broadcom (AVGO). Maybe it needs a proper shakeout to 120 before it tries to rise again.
In the meantime, crypto is in its own world. Bitcoin and Ethereum are near all-time highs. Every day we hear about a different company announcing a strategic reserve in Bitcoin. We will likely see many more of these announcements. This should not make you complacent. Nothing is fully immune against rug pulls and risk-off selloffs. The good news is that portfolio protection is currently cheap.
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.
