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Momentum Monday - Lot's Of Earnings Still To Come...Tomorrow Microsoft and Google

Author

Howard Lindzon
January 29, 2024

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Good morning everyone.

Microsoft and Google report earnings tomorrow. Google hit an all-time high last week (I own it)…

A couple more interesting momentum charts that caught my attention before we get to this weeks show include the mess that is China which nobody has wanted a part of the last five years…until last week…

Next, as tensions heat up with Iran this week and the drumbeat of war continues in Ukraine and Gaza, the defense stocks are right at a spot that interests me as an index (thanks Rotation Report)

One last interesting chart before Momentum Monday…the ‘Costco of Commodities’ that is Latin America (I own some) :

Onward…

You can watch this weeks episode of Momentum Monday and last weeks episode of Trends with Friends on my YouTube channel. It is easy to subscribe and if you do so, every Sunday you will get an alert when the show get posted.

Chapters:

  • Sector expansion (0:00)

  • Earnings season (2:30)

  • How to play earnings (8:09)

Here are Ivanhoff’s thoughts:

Last week brought strong earnings from so many different industries – ASML (semiconductor machines), IBM (Cloud, AI), NOW (software), NFLX (entertainment), ALV (auto parts), AXP and COF (credit cards), VZ (telecom), LVS (casinos), PG (household products), VLO (refining), etc.

We also saw stronger-than-expected GDP growth. Granted mostly due to higher deficit spending and debt level but inflation is also coming down as expected. The economy might be just as strong as the stock market right now. If this is the conclusion the market makes this earnings season, we might see a rotation into small caps.

Small caps were in a game of whack-a-mole last week. IWM gapped up four days in a row and it faded immediately afterwards. A break above 198.50-199 would start a new leg higher. A break below 193 would start a new leg lower. 

The bulk of earnings season is still ahead of us. Most of the big tech reports in the next three weeks. Some of the big ones next week are MSFT, AMZN, GOOGL, META, AMD, etc. Many of them have already made a significant move in the past few weeks to a few months. A positive earnings surprise might be already baked in. This means a gap-up might be used as a reason to take some profits in some of the more popular names.

Featured Charts:

Have a great week.

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