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- Momentum Monday - More AI, More Crazy Headlines from White House, Higher Rates, But Markets Firm
Momentum Monday - More AI, More Crazy Headlines from White House, Higher Rates, But Markets Firm
The More AI We Get,The More Fake News ....The More Price Action Matters
Howard Lindzon
May 27, 2025
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Good morning…
It is good to be back home on Coronado. I had a long walk on the beach and actually ran into Ivanhoff and his family on the beach.
To the markets…
I spent the week mostly away and while the headlines remain nasty and rates continue to march higher, the markets are consolidating rather constructively off the major April $vix 60 lows.
Apple on the other hand is a technical mess asTrump wants his 25 percent from them and Open AI buys their old leader Johnny Ive.
Nuclear had a great week…but these are not growth stocks like simple software.
$NVDA reports Wedneasday.
Enjoy the show below…
Welcome back to Momentum Monday!
In today’s episode of Momentum Monday, Ivanhoff and I discuss the following:
Exploring Japan's Unique Blend of Tradition and Modernity
US Dollar Depreciation and Market Trends
AI and Biotech Stock Trends
OpenAI's Influence on Tech Giants
Impact of US Dollar Depreciation and Tariffs
Challenges for Young Homebuyers in Today's Economy
In This Episode, We Cover:
Here are Ivanhoff’s thoughts:
Last week started with a big upside gap after the US and China reached an agreement to significantly decrease tariffs while they negotiate a trade deal. Other deals are also on the horizon, while inflation is coming down, which has calmed the market down. Inside four weeks, market sentiment went from talking about deep recession and stagflation to believing that testing the all-time highs is inevitable. We’ve had a quick lockout V-shape recovery that has left even the biggest optimists surprised.
The recent rally was led by the groups that were hit the hardest in March and early April – megacaps, semiconductors, and AI-related stocks. If it continues, most of those stocks are likely to close their DeepSeek gaps: NVDA, GEV, ALAB, MU, VRT, CLS, ARM, TSM, etc.
Most momentum leaders are quite extended from their 10 and 20-day moving averages, which makes them a difficult target to chase right now. This might change early next week. Moody’s downgraded the US debt rating on Friday, which caused an after-market selloff across the board. We will likely see a 1-2% gap down on Monday. This will be viewed as a buying opportunity. There are so many underinvested speculators and money managers that the first pullback to 10 or 20dma in momentum leaders is likely to get bought. Bull markets like to climb a wall of worry.
And here are the charts discussed:
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