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Momentum Monday - What...Me Worry? I Will Leave That To The Bond Market

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Howard Lindzon
May 26, 2026

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Good morning…

I hope everyone had a good long weekend.

As always, Ivanhoff and I did our weekly Zoom to talk about momentum in the markets (scroll down).

Investors and traders can’t get enough AI and semiconductor stocks. The banks and the White House will keep giving people what they want until they choke on the eventual supply.

We are not there yet.

It is the momentum in the winners that matters most right now.

I shared a few new ideas in the show as well.

The rest of the world is dealing with higher interest rates, higher oil prices and higher inflation. This feels wrong, but the stock market does not care how you feel.

The bond market is starting to scream at all the bad policy here at home and abroad as rates around the world are spiking. I do not like seeing US treasury rates rise as global uncertainty rises. I am used to seeing investors flee to the safety of US treasuries as uncertainty rises from conflict etc. Will Trump flinch here as rates shoot past 5 percent?

Welcome back to Momentum Monday!

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

  • Bull Market Characteristics: Dips and Sector Rotation

  • Macro Outlook: Inflation, Interest Rates, and the Fed

  • Sector Deep Dive: Small Caps, Housing, and Solar

  • The AI Ecosystem: Memory Chips and Claude

  • The Rally in Space Stocks

  • Server Stocks and Mega Cap All-Time Highs

In This Episode, We Cover:

  • Bull Market Characteristics: Dips and Sector Rotation (0:00)

  • Macro Outlook: Inflation, Interest Rates, and the Fed (2:37)

  • Sector Deep Dive: Small Caps, Housing, and Solar (3:52)

  • The AI Ecosystem: Memory Chips and Claude (7:36)

  • The Rally in Space Stocks (8:16)

  • Server Stocks and Mega Cap All-Time Highs (10:02)

Here are Ivanhoff’s thoughts:

Two of the main characteristics of a bull market are corrections through sector rotation and dips in market leaders being bought aggressively. We saw both in the past week or so. As AI-related stocks took a break, software and solar broke out. Then, the semiconductor ETF, SMH, tested its 20-day EMA, where it quickly found support and returned to new all-time highs despite weakness in its largest holding, NVDA. 

This was the first proper pullback after the rally began on March 31. Small caps IWM tested its previous highs near 271 and bounced. AI data center stock NBIS, semis like INTC, AMD, ARM, and QCOM had a 20% or so pullback above their rising 20EMA, which was welcomed as a buying opportunity. In the meantime, quantum computing stocks received a cash injection from the government and woke up – RGTI, INFQ, QBTS, IONQ, etc. Space-related stocks accelerated their ascent in anticipation of SpaceX IPO – RKLB, RDW, LUNR, VOYG, VELO, etc. 

There is currently a lot more fear of missing out and greed than fear of losing in the tape. The market still does not care about elevated inflation, high oil prices, and galloping interest rates. This is what bull markets do. They climb a constant wall of worry. 

And here are the charts discussed:

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