This Is Not Investment Advice
Volume Lags, Price Nudges - Bitcoin and S. Korea Tech Flash Warnings With Tech Credit Spreads - What Is The Market Telling Us Right Now
A note from Investor’s Business Daily after this week’s action:
IBD calls it ABC investing - Aggressive But Cautious. As stated we have some serious concerns the primary ones being the following: 1) Money Flow on Higher Time Frames, 2) lack of upside Volume for the indices and Risk On in general, 3) Tech Credit spreads looking nasty, 4) longer duration debt creeping back into areas where it presents problems, and 5) excessive giddiness and expectations regarding the Fed . . . . plus many more.
BUT - all that matters is what the market is doing right now and telling us. In my view - the market is frankly situating and setting up in a way that pretty much reflects our stance - cautious but prepared for the next move to be in either direction. We don’t even have to look beyond our own Watch List to see this in action.
Below is the list of Top Industry Groups after this week’s action. Highlighted are the Groups where we have exposure. That consists of either a remaining position or a new one created recently or one that was increased in size.
AMPX
AMPX Weekly
10 Week EMA Shown.
AMPX Daily
21 Day EMA Shown.
EOSE
EOSE Weekly
10 Week EMA shown.
EOSE Daily
21 Day EMA shown.
Thoughts and observations:
Stance for a while now has been that both EOSE and AMPX are in the right place at the right time and business is only beginning to start booming . . . . . 75% of stocks follow the overall market trend . . . . risk has always been a Nasdaq rug pull from AI Capex meltdown, Bitcoin, Fed hawkishness, or whatever it could or might be . . . .
We wanted and asked for a recalibration of the ‘Melt Up’ . . . . . the “New AI Trade” and the new Four Horsemen (AVGO, GOOG, CLS, LITE) will tell is what is up with AI Capex and how that is doing while perhaps the ‘Melt Up’ can continue to evolve and allow other stocks more aligned with energy/power/electricity/military directly to flourish . . . . but again 75% of stocks follow the overall market trend . . . .
Good news . . . . in my view the market absolutely and in no doubt is paying very close attention to AMPX and EOSE and giving them very strong consideration for the stocks and groups that will thrive in the recalibrated ‘Melt Up’ . . . . . if and whenever that were to occur . . . .
Bottom Line . . . . . IF and we emphasize IF the market can show us a sustainable rally backed with Volume then we want to keep these longs and enhance them . . . . . 75% of stocks follow the overall market trend . . . . . Money Flow on Lower Time Frames in the short term along with 21 EMA Daily/10 EMA Weekly and obviously overall market trend . . . . nobody said it was easy or for free . . . .
