Momentum Monday – I Like Saying Breadth Thrusts…And Is Bear Market Bottoming?

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Good morning…

There was lots of talk last week of a ‘bottom’.

If we have bottomed…fantastic. There will be lot’s of gains in the future.

What I do not want to do is chase stocks when the indexes are below the 200 days moving averages.

As always, Ivanhoff and I got together to discuss the markets, some ideas, where we think the markets are at, breadth thrusts and some interesting charts. You can watch/listen right here on YouTube (subscribe on YouTube and you will get an alert each weekend). I have also embedded it below on the blog:

The data on ‘breadth thrusts’ is really good and I have enclosed it here from Krinsky:

One good piece of evidence for a continued rally is the bearish sentiment which I talked about in the show – have a look.

A couple other links:

Here is Charlie’s ‘This Week In Charts‘.

Charlie’s 9 chart Friday.

Stocktwits weekly Momentum Lists.

Here are Ivanhoff’s thoughts:

We see more stocks from various sectors setting up. This season, the market reaction to earnings has been predominantly positive – many names didn’t sell off after missing estimates and cutting guidance; many broke out after stronger than expected earnings. This is a notable change in sentiment compared to the previous two earnings seasons.

Other than Facebook (META), all mega caps had positive reactions to their earnings this season – TSLA, GOOGL, MSFT, AAPL, AMZN. Why does it matter? Those stocks can only be moved by institutional money.

Two new Bills in the making have given a significant boost to two groups of stocks – semiconductors and clean energy. Those are shaping up to be among the current market leaders.

The Fed has given signs that interest rate increases will slow down if the economic data requires it. They are paying attention to inflation and jobs data primarily. GDP was negative in the past two Qs, so the US is basically in a recession. The market reads this as a reason for the Fed’s tightening to become a lot less aggressive.

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.