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- Momentum Monday - Price Momentum Rules ...Enjoy It For Now
Momentum Monday - Price Momentum Rules ...Enjoy It For Now
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Good afternoon…
As many signs of silly speculation froth as I have pointed out the last week, the price momentum is in charge of this market.
I am just enjoying the easy gains because they never last. The key for me at least is to avoid chasing stocks and stories and stick to clean breakouts and strong bases.
Google ( $GOOG ( ▲ 1.29% ) ) is breaking out to all-time highs and so many stocks in my degenerate economy index are benefitting from the rabid speculation and activity.
I will not stand in the way of the party.
We discuss some fresh ideas including the biotechs, Chinese stocks and the speculative fever in Opendoor ( $OPEN ( ▼ 1.7% ) )
Welcome back to Momentum Monday!
In today’s episode of Momentum Monday, Ivanhoff and I discuss the following:
Bull Market Buzz & Market Overview
Fed Policy, Rate Cuts & Market Reaction
Small Caps, Sector Strength & China
Degenerate Economy Stocks & Speculation
Breakouts, Homebuilders & Market Trends
Big Tech Strength & Google Optimism
In This Episode, We Cover:
Here are Ivanhoff’s thoughts:
It is said that we should pay the most attention to seasonality when it doesn’t follow the expected path, because it would not be priced in. This is exactly what has been happening in August so far. Historically, US stocks lose ground in August and September in the second year after the Presidential elections. Not this time around; at least, not so far. There are enough other catalysts to change the projected trajectory.
The Fed’s chairman hinted that they might be ready to begin rate cuts. The market loved the message. Small caps gained 4%. Crypto, homebuilders, and China were also among the best performers. The US Dollar was the biggest loser.
In the meantime, we are in the midst of the biggest deregulation of the financial industry in decades, which allows banks to use more leverage and regular investors to have access to more asset classes. It is an environment primed for degenerate speculation.
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