Momentum Monday - Up Up and Away?

Author

Howard Lindzon
October 27, 2025

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Good morning…

The US and China are back in love.

That is all the markets need it seems for the year end rally to begin.

I have been focused on the price action of $GOOG ( ▲ 2.67% ) , $AAPL ( ▲ 1.25% ) and interest rates which have been giving a green light to higher prices the last few weeks.

Last week e-commerce leader $SHOP ( ▲ 3.54% ) closed at ALL-TIME highs. That is a nice addition to the bullish case for now.

While the consumer may be struggling, few seem to care at the moment as American Express ( $AXP ( ▲ 0.74% ) ) is also at all-time highs.

Ivanhoff and I do our regular tour of the markets in the video below to check in on all this and some fresh ideas… (charts at the bottom of the post)

Welcome back to Momentum Monday!

In today’s episode of Momentum Monday, Ivanhoff and I discuss the following:  

In This Episode, We Cover:

  • Opening Banter & Stocktoberfest Recap (0:00)

  • Market Shakeout and US-China Deal (1:00)

  • Tech Highs: $AAPL ( ▲ 1.25% ) , Starlink, $GOOG ( ▲ 2.67% ) & Crypto (2:30)

  • Chinese Stocks & $LKNCY ( ▲ 0.23% ) Discussion (4:00)

  • Momentum in E-Commerce & Tech Sectors (5:30)

  • Crypto, Semiconductors & Market Sentiment (9:00)

Here are Ivanhoff’s thoughts:

 The market remains resilient. Corrections continue to take the form of sector rotation. The selloff in the momentum high-flyers didn’t even cause a dent in the indexes. Support levels are held. QQQ and SPY briefly dropped near their 50-day moving average when Trump announced new tariffs for China. A couple of days later, he softened his stand, and the indexes quickly recovered to new all-time highs. 

In the meantime, Chinese ADRs have also stabilized and are perking up – BABA, BIDU, PDD, FUTU are some examples. Trump is meeting Xi in person. The market is seeing that as a positive. Common sense says that there will be some version of a deal, even though both countries will continue to work towards bigger trade independence.  

Market sentiment is still mostly bullish. I judge that by market reactions to earnings. Last week, we saw a few downside earnings gaps that were quickly scooped – IBM and TSLA. In the meantime, upside earnings gaps are holding or following through – RTX, ISRG, LRCX.

The next FOMC meeting is this week. The market has priced in another 25bps cut. This is probably the reason why housing and mortgage stocks are getting a bid. Solar, biotech, and small caps are also showing relative strength.

Five of the so-called Mag-7 companies report earnings next week – GOOGL, MSFT, AAPL, AMZN, META. They are followed by so many people that it is hard to produce a sizable surprise. Higher volatility is a given next week, but dips near important support levels are likely to continue to work – just like last week saw PLTR bouncing near 170, SNOW bouncing near 240, QQQ bouncing near 600, VRT bouncing near its 50dma, CEG bouncing near its previous breakout level, etc. 

And here are the charts discussed:

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