Momentum Monday – Bigly Money Supply and Tiny Bubbles

Happy Labor Day.

As a reminder, Marketsmith (by Investor’s Business Daily) is now a sponsor of the weekly show. All the charts you have been seeing in the videos and will continue to see are from Marketsmith. They are offering my readers a three week trial for $19.95. Click this link if you would like to try it out.

Some selling finally took place in the Nasdaq.

Ivanhoff and I discussed the possibilities and looked at both the damage and opportunities in this weeks episode of Momentum Monday. You can watch/listen here on YouTube.

When push comes to shove with this rally, I am giving the benefit of the doubt to low interest rates and global money supply (which is raging higher). Take a look at the IPO market as well:

The world is different post COVID-19. Market structure is different. The cloud, e-commerce and the global, mobile social creator class are accelerating forces.

Two companies of this new era that stand out most to me are Zoom and Bytedance (TikTok):

and Tiktok

The speed of their growth is epic and I won’t be surprised to see companies come along to grow faster and bigger.

I have been harping on ‘supply’ the last few weeks as the only natural killer of this bull market run.

The IPO’s and SPACs do keep coming. Billions are being placed into trust before a deal is even considered when it comes to SPACs.

In a vote of confidence on the topic of SPACs, even Fred Wilson came out to say they are largely a good thing.

I will leave you with Charlie’s FIVE charts of the week and this chart which does show that breath has been expanding…

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.