Momentum Monday - Monday's Suck In Bear Markets and One Year Ago In Crypto
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Monday's suck in a bear market.
But, the show must go on.
As always, Ivanhoff and I tour the markets looking at the good, the bad and the ugly.
It is for sure ugly in crypto and software and growth in general (at least the growth I was accustomed to following with the last 10 years), but as we point out in this weeks episode, solar, old energy, defense stocks, select biotech/healthcare and boring consumer brands like McDonald's and Pepsi are holding up and in some cases - going higher.
One 'technology' growth stock on the verge of all-time highs is Taser ($AXON). It crashed with growth stocks into March and has mostly recovered. If I were to guess. they have a couple unique tech moats in the actual Taser gun and the private cloud network attached to the police cams.
You can watch this week's episode on Youtube, embedded below:
Here are Ivanhoff’s thoughts:
It seems the market is worrying about something different every week. Three weeks ago was about high inflation. Then after the lower-than-expected CPI print, about missing out on a potential rally. Last week, it seems the new worry was about the implications of a potential recession in 2023. We went from “bad news for the economy is good news for the stock market mantra” because it means the Fed might pivot earlier to “recession might not be fully priced in the stock market yet”. None of these things are relevant if you are a short-term trader.
Large caps QQQ and SPY tested their 10-day EMA and bounced. Small caps IWM tested their 20dEMA and bounced. It is normal to see some form of consolidation after the post-CPI ramp. The pullback in the past week has helped many stocks to form setups with better risk/reward entries. I see some intriguing setups in biotech and energy. That’s what matters. We don’t know if those setups are going to work but at least they exist. Most breakout attempts didn’t work last week, probably because of the general market weakness. Buying pullbacks have worked a lot better lately.
Here is this weeks Stocktwits momentum lists. The lists are free so sign up...it is where I start my weekly work to prepare.
One year ago in crypto life was good....today prices are down 70-90 percent...
Crypto as a whole (market cap) is down 70 percent in 2021, but still up 80x since 2013...so you won't kill the crypto fever even with all the fraud...
Have a great week.
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