Momentum Monday….Inflation Baby!!

As a reminder, Marketsmith (by Investor’s Business Daily) is now a sponsor of the weekly show. All the charts you have been seeing in the videos and will continue to see are from Marketsmith. They are offering my readers a three week trial for $19.95. Click this link if you would like to try it out.

Off we go…

Oh boy…the markets keep giving. Don’t ask too many questions. It will get much harder one day.

This week is a bigly week for earnings. Stay on your toes. Stocktwits has an earnings calendar.

Here is the Stocktwits 25 which you can get free each weekend if you follow @stocktwits on Stocktwits or Twitter. It is where I start my weekly momentum work.

I will keep trying to ride the momentum and will keep this week’s post short. I shared a few new ideas in this week’s episode. I like the setups in $EBAY and hate to say it Goldman’s Sack continues to look like a big move higher is still to come. The margins the banks make for helping clients raise money over Zoom is not something they will let go of anytime soon. Less meals, less travel…more margins.

I just don’t believe that the end of COVID will hurt the poster children of COVID stocks – Docusign and Zoom (long $ZM).

Here is this week’s episode to watch/listen on YouTube. I have embedded it on my blog..

Here is Ivanhoff’s quick take:

The signs are all over the tape. Interest rates continue to spike. Soft and hard commodities haven’t been this strong in more than 15 years. The U.S. Dollar is in a downtrend. Stock markets around the world are in an uptrend led by small caps. It could be the new fiscal stimulus or the expectations for the Fed to remain accommodating for the foreseeable future or the vaccinations to end the virus sooner than most believe, but back-to-normal stocks continue to be on fire – airlines, hotels, travelling agencies, leisure stocks in general, oil & gas, financials, industrial metals like copper, nickel, steel, lithium, etc. In the meantime, many of the large and mega-cap stocks which are considered a sure thing in the long-term (AMZN, AAPL, MSFT, FB, NFLX, GOOGL, V, MA, etc), are showing clear relative weakness. The narrative has changed at least for the time being.

The stock market is often acting counter-intuitively. After all, who in his/her right mind would consider buying airlines that are still operating at half capacity and are dependent on government help and sell Apple and Amazon which are reporting record numbers? And yet, this is what is currently happening. The market is looking 6-12 months ahead and trying to discount a different story. The market doesn’t always end up being correct but between the process of discounting the future and the confirmation or rejection of it by reality, many stocks can go up 2-10x. This is why we pay attention to price action. The only things that change are the tickers of the leading stocks; their patterns remain the same.

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