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Momentum Monday - When It Looks Too Good....

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Good morning.

Ivanhoff and I share a lot of new ideas this week. The chapters of the show are listed below the video.

You can watch this weeks episode of Momentum Monday and last weeks episode of Trends with Friends on my YouTube channel. It is easy to subscribe and if you do every Sunday you will get an alert when the shows get posted.

Chapters:

  • Intro (0:00)

  • Rotation and the week ahead (0:46)

  • Semi-conductors (3:20)

  • Profitable tech (5:20)

  • Is cash king? (6:50)

  • Google and Gemini (8:45)

Riley’s Corner:

Here’s Riley’s screen that tracks new 52-week highs and lows sorted by the total followers on Stocktwits. For those unfamiliar, here’s the gist, 

In uptrending markets the least followed stocks with the highest relative strength are most interesting to me.

In downtrending markets, the most followed stocks with the weakest price relative strength are most interesting to me.

Riley shared a few words on this week’s results…

Some notable names,

RxSight ($RXST) is the New High Standout of the Week. The vision technology company surged +18.70% for its second best week of all-time. The stock is up +48.68% since its Nov. 9th earnings release.

Signet Jewelers ($SIG) is a notable new high. The diamond retailer rallied +13.87% after it beat earnings estimates and raised guidance.

MicroStrategy ($MSTR) is a notable new high. The de facto Bitcoin ETF advanced 13.59%. As of its Nov. 1st earnings report, $MSTR holds 158,400 BTC.

GitLab ($GTLB) is a notable new high. The code hosting and collaboration platform propelled +12.83% after it beat earnings estimates and raised guidance.

Worthington Enterprises ($WOR) is a notable new high. The steel manufacturer marched +12.13% making its second straight double-digit weekly gain.

National HealthCare ($NHC) is a notable new high. The senior care provider carried +14.19% and closed at an all-time high.

Scholar Rock Holding Corp ($SRRK) is a notable new high. The biopharmaceutical company popped +35.69% and closed at its highest price since Feb. 2022.

Cerevel Therapeutics ($CERE) is a notable new high. The Neuroscience biopharmaceutical company rocketed +58.84% as AbbVie ($ABBV) announced it will acquire all outstanding $CERE shares for $45 / share. The transaction values Cerevel at ~$8.7 billion.

GDS Holdings ($GDS) is the New Low Standout of the Week. The Chinese data center provider plunged -15% and closed at its lowest price since July 2017.

Sasol ($SSL) is a notable new low. The South African chemical and energy company stumbled -14.81%.

Instacart ($CART) is a notable new low. The online grocer grinded -3.67% and closed at a weekly all-time low.

IHS Holding Limited ($IHS) is a notable new low. The mobile telecommunications infrastructure servicer sank -10.06% and closed at an all-time low.

Click here for the full weekend review.

Here are Ivanhoff’s thoughts:

The tiny dip in mega caps was bought again. AMD and AAPL broke out. AMZN and TSLA are setting up for a potential breakout. NFLX might be ready to bounce if it clears 456-457. We saw Paramount and Warner Brothers rallying on Friday, so some of that momentum might impact Netflix as well early next week. MSFT is trying to bounce near its rising 20-day EMA. GOOGL had a huge day last Thursday after they revealed a video with the capabilities of their AI platform Gemini. Then it gave back some of its gains the next day on reports that some of the results might have been manipulated. We will know more next week. NVDA also bounced and it is back above its 20-day EMA. Going back above 480 will open a path for a test of 500. Above 505, it might attempt a run for 550.

Speculative, highly-shorted stocks remain the biggest movers. This is likely to remain the theme for the remainder of the year and early next year, as long as small caps continue to recover. Just look at the recent moves in AAOI, AFRM, IONQ, UPST. I highlighted those stocks are the very beginning of their 50-100% moves. CVNA has a short squeeze potential for the next week. Also, AEHR, IONQ, etc.

Let’s not forget there’s an FOMC meeting on Wednesday. The last one on Nov 1st kicked-started a huge rally. I wonder if this time, Powell will try to cool down market expectations about interest rate cuts next year. As always, what matters in the short-term is the market reaction; not the news.

Featured Charts:

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. - A Little Too Frothy

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