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Momentum Monday - European, LatAm and Indian Banks Have Momentum And So Does Gold...

Momentum Monday - European, LatAm and Indian Banks Have Momentum And So Does Gold...

Howard Lindzon
April 21, 2025

As a reminder, MarketSurge (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 MarketSurge. They are offering my readers 2 months for $59.95 - save $239. That's 80% off the most powerful stock research platform for individual investors.

Good morning…

As always, Ivanhoff and I tour the markets looking for momentum and while American financials and growth stocks suffer, the rest of the world banks are trending up and to the right.

Gold continues to make all-time highs as well.

This is not a pretty moment for US stock investors. The twist to this panic is money is leaving the FANG/MAG 7 stocks, not really treasuries and headed for foreign financials.

The combo of policy that investors don’t trust, a plunging US dollar and rising rates from de-globalizing policies in the United States make the foreign banks a better place to hold money for the time being at least.

The Stocktwits Sentiment Index has now spent almost two month elevated above COVID bearish sentiment levels. The community was early to fear the poilicy and downtrend and will not relent. The persistence has me concerned that the worst is not over.

Here is the whole show below which covers the few US sectors and stocks that are working:

Welcome back to Momentum Monday!

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

Financial Market Update: $BTC.X ( ▼ 0.03% ) , $GLD ( ▲ 1.42% ) , and US Dollar Trends
Impact of US-China Trade War on Rare Earth Metals
Market Trends: Strength in Key Groups
The Impact of Travel Restrictions on Americans
Navigating Mixed Signals in the Current Market
The Impact of Tariffs and Populism

In This Episode, We Cover:

Financial Market Update: $BTC.X ( ▼ 0.03% ) , $GLD ( ▲ 1.42% ) , and US Dollar Trends (0:00)
Impact of US-China Trade War on Rare Earth Metals (3:41)
Market Trends: Strength in Key Groups (7:14)
The Impact of Travel Restrictions on Americans (10:48)
Navigating Mixed Signals in the Current Market (14:33)
The Impact of Tariffs and Populism (17:58)
Here are Ivanhoff’s thoughts:

The Nasdaq 100 (QQQ) tested its VWAP since its lows again near 438. It held it again. If it goes back under 438, we will likely see another leg lower. There is also a possibility of a higher low forming near 438.

The silver lining from last week is that we are finally seeing the market trying to find the potential winners in the new macro environment. For example, we saw a big jump in rare earth metal stocks after China curbed its exports. Stocks like MP, USAR went up between 20% and 100%. There’s always a bull market somewhere; even in the midst of an overall bear market; even if those rallies don’t last long.

Foreign financial stocks are showing notable relative strength. Indian banks broke out to new all-time highs – IBN; Argentine and European banks are back above their 50dma and setting up – GGAL, BBAR, EUFN, etc.

The energy sector also woke up last week – the reason is not an expected economic growth, but a potential escalation with Iran and other oil-rich nations that could limit supply.

Other than the above-mentioned, the industries that are currently showing relative strength have a mostly defensive nature – telecoms, consumer staples, and utilities. The market is pricing a potential slowdown in growth or even a recession.

In the meantime, the new earnings season has just begun, and so far, the market reaction has been mostly bearish. Companies are warning about missing estimates ahead of their reports. Even the ones that beat estimates are selling off or not following through because of lower guidance. At this point, the market seems more focused on tariffs and trade wars than earnings.