The market’s up big this morning and tech is strong — which I was not suspecting at all.
The market is whacky right now with no real directional bias. Things have been choppy and usually after a big run up like this, the market should pull back and cool off a bit.
But we have been consolidating with low volume, which often means we’re going to go higher once volume picks up.
I do believe Nvidia, one of the biggest stocks to move the markets, is overdone. It’s gone from $250 to $790 in less than a year. So we need to be careful because it could easily go from nearly $800 back down to $500 and still in a strong uptrend.
I won’t try to pick a top, and I won’t start trying to sell it short — no way!
But this is too much, too fast. So be CAREFUL.
We have a lot of important Federal Reserve reports coming today, including Durable Goods, the Home Price Index and Consumer Confidence. These aren’t big enough to move markets on their own, but several of these reports at once can light a fire or cool things off quickly.
We have a BIG, market-moving report coming Wednesday in fourth-quarter 2023 gross domestic product.
The bond market has also been extremely choppy and without directional bias, which is common when you’re in between two moving averages — known as being “pinched.”
But all in all, the trend has been down. Usually when we have a pinch like this, it generally breaks out one way or the other.
I’ll cover all that and more in this morning’s “Premarket Must Watch” video!
Roger Scott
Roger Scott Trading
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