- Howie Town
- Posts
- Momentum Monday - Volatility Picks Up As Interest Rates Refuse To Drop
Momentum Monday - Volatility Picks Up As Interest Rates Refuse To Drop
Also I Explain The New Narrative Economy and Memecoins
Howard Lindzon
December 23, 2024
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.
Welcome back to Momentum Monday!
In today’s episode of Momentum Monday, Ivanhoff and I discuss the following:
Market Reactions to Fed Rate Adjustments
Energy Sector and Election Impact
The Role of Tech in US Macro Policy
Impact of AI on Employment and Corporate Profit
Intersection of Robotics and Medicine
Meme Stocks and Meme Coins: Differences and the Future
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:
Here are Ivanhoff’s thoughts:
Volatility tends to spike at turning points. Was last week one or was it just another shakeout in a bull market? After all, the Nasdaq 100 just tested its 50-day moving average and bounced, making a higher low. We can talk about the possibility of a more serious correction if QQQ quickly goes below its 50dma and start trading there.
The Fed cut rates by 25bps and yet rates went up again reflecting the market’s expectations for higher inflation and a more hawkish Fed in 2025. Algos panicked and the stock indexes had their biggest one-day selloff since 2022. We saw a bounce attempt on Friday, so now the question is if this will be just another quick V-shaped recovery or the beginning of a deeper pullback. Is this buy the dip or short the rip market? We will know soon enough. What we know so far is that market breadth has been deteriorating for the past few weeks. Momentum leaders have been under pressure as well. Look at the price action in anything crypto-related, TSLA, quantum computing, or semis. The best swing trade opportunities come right after a market correction so even if we get one, there will be much better opportunities down the road.
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.
Reply