Momentum Monday – Space, Memory, AI, Data, Biotech…Are People Just Too Bearish?

Howard Lindzon Howie Town

11 hours ago

4 MIN READ

As a reminder, MarketSurge (by Investor’s Business Daily) is 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 afternoon…

There is ‘peace’ according to Trump (no details of course) and the self congratulating was good enough for traders and investors.

I wanted to wait until the market closed to share today’s Momentum Monday. If you want to watch the show Sunday evenings or early am Monday before the market just subscribe to the YouTube channel below.

My gut last night was the ‘peace’ deal could lead to a ‘sell the news’ type of event. It was not that way at all and the markets closed at or near-all time highs.

Regional banks are breaking out, biotech is on verge of breaking out, midcap stocks are breaking out and small cap stocks are breaking out. That is on top of massive trends of money flowing into defense, space, ai, gambling, and memory chips.

Just today, SpaceX ( $SPCX ( ▲ 19.6% ) ) gained $400 billion in value which is ten Twitter’s (Elon paid $40 billion for Twitter now tucked into SpaceX.

Math is out the window because as Elon says ‘when you are a trillionaire you can just grab Goldman’s Sack and Jamie Demon by the pu$$y. They let you do it.’

God bless us/those not timing the market.

I cannot imagine the pain right now for ‘professionals’ underinvested.

I will not be the one to stand in the way of this tidal wave. The ten percent one day crash in the semiconductor index was gobbled up by traders and investors.

Only software stocks continue to underperform and nobody really cares at the moment.

I hope you enjoy the show…

Welcome back to Momentum Monday!

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

$SPCX ( ▲ 19.6% ) Trillion-Dollar IPO and Valuation Math
Peace Deal, Market Surge, and Small-Cap Leadership
Sector Rotation: Defensive Healthcare vs. Slower Tech Moves
The Big Software Slump: $MSFT ( ▲ 2.31% ) , $ADBE ( ▲ 1.15% ) , and AI Competition
Capital Raising Context: Trillion-Dollar Supply and Shrinking Markets
Crypto Lag vs. Oil Drop and Macro Trends

In This Episode, We Cover:

$SPCX ( ▲ 19.6% ) Trillion-Dollar IPO and Valuation Math (0:00)
Peace Deal, Market Surge, and Small-Cap Leadership (2:54)
Sector Rotation: Defensive Healthcare vs. Slower Tech Moves (5:05)
The Big Software Slump: $MSFT ( ▲ 2.31% ) , $ADBE ( ▲ 1.15% ) , and AI Competition (8:44)
Capital Raising Context: Trillion-Dollar Supply and Shrinking Markets (10:33)
Crypto Lag vs. Oil Drop and Macro Trends (12:13)

Here are Ivanhoff’s thoughts:

We saw a couple of high-volume distribution days in the Nasdaq 100, mostly caused by a pullback in AI infrastructure stocks. They were so extended from their 20 and 50-day moving averages that a mean reversion of some sort was normal. The important part of this decline was that it didn’t impact many stocks. The small and mid-cap index, IWM and MDY, made a higher low and are already back to new all-time highs, helped by strength in financials and healthcare. Corrections through sector rotation are one of the defining characteristics of bull markets. This one is not any different.

SpaceX’s IPO was oversubscribed four times. They raised $75 Billion dollars at an almost $2 Trillion valuation. There was a brief worry that the money had to come from somewhere, and the transfer would impact other tech mega caps. Well, it did. QQQ and SPY are now underperforming small and mid caps, but this is also usual during strong uptrends. The next big IPO raises are likely after the summer; the large caps might also see new highs soon, especially ahead of the 250th birthday celebration of the United States.

Software stocks’ pullback was a lot deeper than the rest of tech over the past week. IGV tested its 50dma, where it printed a tight-range inside day on Friday. This would be a good spot for a bounce next week. In the meantime, industrials (XLI) and semis (SMH) are setting up for a potential breakout.