Momentum Monday – Dips Are Still Being Bought

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We are in earnings season so I try to do less and it is important to know your earnings dates.

As always, Ivanhoff and I did our weekly video tour of the markets on Sunday eve. You can watch the video here and I have embedded it below on the blog:

I riffed on a bunch of topics, ideas and trends in the show so best you watch or listen this week.

Ivanhoff had this to say…

The price action in the indexes last week was like Christmas lights – red and green days alternating. At the end of the week, dip buyers won again. The large-cap indexes closed near all-time hghs. The small-cap ETF – IWM, closed above its 50-day moving average.

The U.S. Dollar continues to pull back. Naturally, capital is not leaving the stock market; it is just rotating between sectors. Beaten down former momentum darlings in clean energy bounced. NFT stocks woke up. Homebuilders made another all-time high. Biotech is back in the game with quite a few constructive setups in the space – CRSP, MGNX, AGIO, NTLA, HZNP, etc. The semiconductor ETF – SMH, held its 50-day moving average and now we see some intriguing setups there – AMAT, KLAC, ICHR, etc. Industrial metal stocks keep showing relative strength – steel (X, CLF), copper (FCX), aluminum (AA), lithium (ALB, LIT). Potash is also looking attractive – MOS, CF, SQM, etc. Tech stocks are also holding their ground – NET had a high-volume breakout, XM is working on a new base, ETSY is setting up, etc.

Big week for earnings is ahead. Big Tech reports – AAPL, GOOGL, MSFT, AMZN, FB, TSLA. Also, V, MA, TXN, MCD, QCOM, UPS, SBUX, CAT, AMD, and hundreds of others. Both, the Nasdaq 100 and Russell 2000 are setting up for a potential breakout. I suspect that they will remain range-bound until the bulk of earnings is behind us.

The Stocktwits weekly 25 is here and is free every Saturday.

Nikita is doing a weekly SPAC wrap and outlook for Social Leverage here.

Charlie’s weekly 5 chart Friday is always excellent as well.

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