Good morning,
The story this week has been the Nasdaq 100, which soared to a breakout on Monday and new closing (though not intraday) highs on Tuesday. Yesterday, saw markets pull back, and much of the “market of stocks” remains very much under pressure (lowest close since June for the Russell 2000).
However, whether absolute or relative return focused, breakouts deserve to be looked at opportunistically.
We’ll start by reviewing three of the biggest drivers of Monday’s breakout, then hit:
My favorite setups in the Nasdaq 100 right now
Crypto plays for the Bitcoin breakout
Three bottoming bases
Hot List updates
and more!
3 of the biggest drivers of Monday’s breakout in QQQ
META surges through its long-term downtrend line
The Monday Morning Playbook categorized Meta as “At key inflection point”. Well, inflection: Up. I wouldn’t chase here, but this removes a huge drag on the Mag 7 and communication services, and I would be interested if we saw a pullback toward $700.
Intel correction looks to be over
Intel added to a breakout late last week with a 12.1% gain on Monday. If we’re above $107, the path of least resitance is higher here.
ARM was the day’s top performer
Finally, the Qs biggest gain came from ARM Holdings, which broke out from a double-bottom, holding the 200-day in the process. The measured target here is $380, close, but not to, the June all-time highs.
