Momentum Monday – The Breadth is Real and Spectacular

It’s Monday, which means it is time for a tour of the markets and momentum.

Something new this week is that Marketsmith (by Investor’s Business Daily) is now a sponsor of the weekly show and I get to add some creative production over the next few months. All the charts you have been seeing 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.

This week’s show is 22 minutes. Click here to watch, or watch right here:

The show has some new ideas. If you watched last week we really liked Baidu and Illumina and both have had monster weeks.

I love this Seinfled clip which is not about Breadth, but definitely on point for today.

The market breadth is spectacular right now:

As Peter Brandt says… Bear mkts in stocks begin when a small portion of stocks prop up general mkt while majority of stocks have begun decline. Just the opposite happening in U.S. equities.

As good as the momentum is, I would not be surprised to see a steep pullback, specifically in software stocks.

Here is Microsoft making fresh ALL-TIME HIGHS today (team Stocktwits says it is up 100,000 percent since the IPO). The technicians are starting to point out divergences in software stocks (here for instance is a chart of Microsoft) as they chug higher. Here is the divergence in the software index:

My goals on this blog, especially Monday’s, is to help people find trends and ride them, but getting off is part of the business as well. Booking some profits along the way is a key to investing for profit and joy.

Have a great Tuesday.

Also published on Medium.