Momentum Monday – Much Ado About Inflation
Courtesy of Howard Lindzon
Happy Monday everyone.
I will get right to it this week because Ivanhoff and I covered a lot of ground in our weekly Momentum Monday. You can watch it here and I have embedded it on my blog:
Here are Ivanhoff’s thoughts:
The price action in the indexes last week was like Christmas lights – red and green days alternating. At the end of the week, dip buyers won again. The large-cap indexes closed near all-time hghs. The small-cap ETF – IWM, closed above its 50-day moving average.
The U.S. Dollar continues to pull back. Naturally, capital is not leaving the stock market; it is just rotating between sectors. Beaten down former momentum darlings in clean energy bounced. NFT stocks woke up. Homebuilders made another all-time high. Biotech is back in the game with quite a few constructive setups in the space – CRSP, MGNX, AGIO, NTLA, HZNP, etc. The semiconductor ETF – SMH, held its 50-day moving average and now we see some intriguing setups there – AMAT, KLAC, ICHR, etc. Industrial metal stocks keep showing relative strength – steel (X, CLF), copper (FCX), aluminum (AA), lithium (ALB, LIT). Potash is also looking attractive – MOS, CF, SQM, etc. Tech stocks are also holding their ground – NET had a high-volume breakout, XM is working on a new base, ETSY is setting up, etc.
Big week for earnings is ahead. Big Tech reports – AAPL, GOOGL, MSFT, AMZN, FB, TSLA. Also, V, MA, TXN, MCD, QCOM, UPS, SBUX, CAT, AMD, and hundreds of others. Both, the Nasdaq 100 and Russell 2000 are setting up for a potential breakout. I suspect that they will remain range-bound until the bulk of earnings is behind us.
On the subject of inflation I really enjoyed Genevieve’s thoughts in her free Grit Capital newsletter. Have a read.
Nikoita’s weekly update on the SPAC markets is also great.
Stocktwits weekly 25 is always where I start my week of investing.
And, last but not least is Charlie’e 7 chart Sundays.
Have a great week.
Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security. For full disclosures, click here.
As a reminder, Marketsmith (by Investor’s Business Daily) is now a sponsor of the weekly show.
