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Momentum Monday - On the 700th Day, Semiconductor Stocks Rested

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Welcome back to Momentum Monday!

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

  • Intro and last week in review

  • Deep Dive Into Tech Stocks and the calm rotation despite semiconductor pullback

  • $AAPL, $SPOT, $AMD and more

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:

  • Intro and last week in review (0:00)

  • Deep Dive Into Tech Stocks (4:00)

  • $AAPL, $SPOT, $AMD and more (9:20)

  • Wrap up (14:30)

Here are Ivanhoff’s thoughts:

AI stocks went parabolic in the first half of the week. They gapped up on Thursday and that was it. What followed was a quick pullback in NVDA, SMCI, DELL, MU, SOXL, etc. It’s normal to see leaders test their rising 10 or 20-day moving averages.

The decline in semis coincided with a rise in other sectors. 

The biotech ETF, XBI bounced near its 50-day moving average, led by GILD, RNA, and SRPT among others. 

Retailers also perked up. AMZN bounced. Stocks like DKS and BURL are setting up for a potential breakout near their 52-week highs. 

Internet and software have been in the penalty box for most of 2024, yet GOOGL and MSFT are near their all-time highs. So is GWRE, META is acting constructively above its rising 20-day moving average, and if it clears 504, it could try to test its all-time highs. ESTC is hanging right at its rising 20dEMA.

Such sector rotations are typical for bull markets – money doesn’t leave; it just moves to a different group of stocks. We will probably see more of the same even if the large-cap indexes, SPY and QQQ pull back towards their 20-day moving average.

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.


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