Momentum Monday - Still A Bull Market

The Fed raised interest rates again to 5.5%. The market barely blinked. Volatility and distribution days have picked up as of late but for the most part, dips in market leaders are still getting bought. The S&P 500 and the Nasdaq 100 are about 5% from their all-time highs. The odds that they will test those highs at some point this year.

We are in the midst of a new earnings season. Google, Meta, and Microsoft crushed earnings estimates. MSFT pulled back to tis 50-day moving average where it found support. GOOL and META made new 52-week highs. ROKU, LRCX, BA, ALGN, AXNX were among the big earnings gainers last week. SNBR, SPOT, ENPH, CROX were among the stocks that had the biggest post-earnings pullbacks. Apple and AMD are on deck next week.

There seems to be a new group of stocks that is shining every week. Semiconductors ETF, SMH gained 4% for the week, closing at new all-time highs. It was overshadowed by China-related stocks, most of which rose more than 10% for the week. Those constant rotations are keeping speculators on their toes. I personally participated in those moves via SOXL for semis and via CWEB, BABA, TCOM, BIDU, BZ options and stocks.