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Momentum Monday - Risk On Continues and Broadens

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I hope everyone had a lovely Thanksgiving.

With the kids home with some of their friends, we had a great time.

I spent all Sunday evening just catching up on work and the markets.

As always, Ivanhoff and I got together and taped Momentum Monday.

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.

Something new I will try out like we do with ‘Trends With Friends’ is to share some charts we talk about in the episode at the bottom of the post/newsletter. Hope it helps (just scroll down).

Chapters:

Here are Ivanhoff’s thoughts:

QQQ and SPY broke out from a tight-range consolidation but they didn’t go very far as both are extended in the short-term perspective. Consolidations happen when buyers don’t want to chase the current prices but are willing to buy the quick 3-5% dips. Typically those types of consolidations resolve higher. 

The small-cap index, Russell 2k is consolidating in a tight range right below its 200-day moving average. If it finally breaks out and starts trading above its 200dma, we are likely to see many faster movers among the more speculative, highly-shorted stocks like LMND, AFRM, CVNA, IOT, etc.

Nvidia crushed earnings estimates and raised guidance again. It didn’t break out on the news because it was already up 25% in the three weeks preceding the report. It could test 475-450 before it attempts to break out above 500-510 again.

Featured Charts:


Nvidia’s price action post earnings

Small-cap sectors

8-Month highs in Financials

AeroVironment 52-week highs ($AVAV)

New 52-week highs in Coinbase ($COIN)

And finally, some context for the magnificent 7…

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.

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