May the froth be with you. Investors all jumped into the AI Meme/tech pool on Friday as scores of AI-related and semiconductor names shot higher at the open. This included the two biggest of the big-stock AI Meme names, Nvidia (NVDA) and Super Micro Computer (SMCI). This is what their charts looked like approximately two hours after the open as both stocks posted Livermore Century Mark long entries at their respective $700 Century Marks. Major market indexes meanwhile all posted higher highs on Friday as the S&P 500 cleared and closed above the 5,000 level for the first time while the NASDAQ Composite is now testing the 16,000 level.
Arm Holdings (ARM) joined the AI Meme Century Mark party on Thursday when it gapped through the $100 Century Mark on Thursday after reporting earnings on Wednesday after the close. We previously reported on ARM as a potential moving average undercut & rally (MAU&R) set-up if it could regain the 20-dema, which it eventually did a few days before reporting earnings. It was possible to gain an early entry ahead of earnings at that time, perhaps using options to limit risk if one sought to hold through Wednesday's earnings report.
Bitcoin $BTCUSD finally popped through its 50-dma on Wednesday as we reported on buyable VDU action in the Grayscale Bitcoin Trust (GBTC) as it held tight along the 10-dma. It is now extended as its tests the prior early January highs at 43.50.
Crypto related stocks that we reported on as potential buyable gap-ups (BGUs) early in the day on Thursday, CleanSpark (CLSK), Iris Energy (IREN), and Marathon Digital Holdings (MARA) did not hold their early volume run rates and so fell short of the volume levels required for BGUs. However, all three moves did qualify as pocket pivots at the 50-dma for CLSK and MARA and the 200-dma for IREN. On Friday, all three stocks and other crypto related names such as Riot Platforms (RIOT), which had also posted a pocket pivot on Thursday, gapped higher after CLSK beat on earnings Thursday after the close. All of these are now extended, but it was quite possible to get long these by Thursday. Also, Gil discussed Marathon Holdings (MARA) as a long entry.
Arista Networks (ANET) continues to make new highs ahead of earnings this week. The company is expected to report after the close on Monday, February 12th. We previously reported on ANET when it posted pocket pivots in early December and early January. If one is long from either of those entry points then one certainly has enough cushion to sit through earnings on Monday.
On Wednesday morning we reported on prior buyable gap-ups (BGUs) in Amazon.com (AMZN) and Meta Platforms (META) that occurred two Fridays ago after both companies reported earnings the day before. Both stocks were forming tight little flags which looked constructive at the time and were holding nicely above their BGU intraday lows at 167.33 and 453.01, respectively. AMZN then broke out to higher highs on Friday while META remains in a short five-day flag formation. If META pulls in a little bit further, would look for a long entry as close to the 453.01 BGU low as possible after Friday's 468.11 close. The BGU low is then used as a tight selling guide per standard rules for buying BGUs.
The Market Direction Model (MDM) switched to a BUY signal on Wednesday, February 7, 2024.