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Momentum Monday - Correction Mode For Technology Stocks
Howard Lindzon
November 02, 2026
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It was an ugly week for technology stocks, specifically the AI hyperscalers like Google and Meta. I did buy some shares of each for the first time in a while on Friday.
There is a lot riding on the IPO of Anthropic. They need to get public and let the market do it’s thing.
Ivanhoff and I spent time touring other areas of the market that are acting better while technology corrects.
I hope you enjoy the show…the details of the show are below the link.
Welcome back to Momentum Monday!
In today’s episode of Momentum Monday, Ivanhoff and I discuss the following:
Ivan's back from San Diego (0:00)
A disaster earnings season for AI: $GOOGL and $AMZN miss (1:04)
$INTC: still a PC business — the Trump bump unwinds (1:42)
$NVDA is still the king, back at its 200-day (2:38)
Even beats get sold: $META, and only $AAPL is beating the S&P (3:23)
What's working: the rotation into staples and healthcare (4:39)
$LLY is a growth stock, not a defensive one: GLP-1s and peptides (4:53)
Biotech: $IBB at highs vs. $XBI, $REGN back from the dead, $ISRG lags (6:55)
Energy keeps trending (8:33)
$V and $MA: the spend-don't-buy generation (9:39)
The exchanges are back on trend: $CBOE, $CME, $ICE, $NDAQ (12:01)
Grokbot's costs and SpaceX below its IPO price — a sketchy moment for AI (14:24)
Here are Ivanhoff’s Thoughts
We are experiencing one of the weakest earnings seasons since 2022. Amazon and Google missed estimates. Intel gave much lower-than-expected guidance. Even companies like SpaceX and Meta, which beat estimates and raised guidance, sold off. There is a lot of fear surrounding the AI trade; fear that this might be a major top for the group. It seems any news is bad news now and is sold. The most interesting part about it is that it is happening just two weeks before one of the most-anticipated IPOs in the AI space – Anthropic.
The indexes are currently in a correction mode. The weakness in semis spilled over to software. The market sold Fortinet (FTNT) and ServiceNow (NOW) earnings, and they took the entire industry with them. Small caps (IWM) rallied to their declining 50-day moving average, where they were rejected. The Nasdaq 100 tested its 50dma from underneath in each of the past two weeks, and it was rejected. In the meantime, capital rotated into defensive sectors like healthcare and consumer staples.
Every market environment requires a different approach. April-June and August of this year allowed for multi-week swing trades. What’s currently working is intraday and very short-term swings: 1-3 days. The other alternative is cash/short-term Treasuries. There were obviously some exceptions – crude oil, energy, and healthcare have been trending up in October above their 20EMA. Consumer staples also, but were a lot more volatile. Gold and silver have been trending down below their 20EMA in the past six weeks.
The midterm elections are Nov 3rd. I believe they might end up being a catalyst for the next big move, especially if there’s an overnight selloff.
And here are the charts discussed:
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