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Hot Corner Insider

The Mega-Cap Tech Trade Is Back

December 4, 2024

Thanks to everyone who joined us for today's Hot Corner Insider Weekly Strategy Session.

One major theme this week is the fact that the largest companies in the world are breaking out, setting up for the next leg higher.

After six months of chopping around, Apple $AAPL broke out to new all-time highs:

 

We think this move in AAPL could set the tone for the rest of the mega-cap space to follow.

Meta Platforms $META is doing the same thing:

 

The best players are stepping up and getting back in the game.

We think Nvidia $NVDA will be back at new all-time highs soon as well:

 

Nancy Pelosi has been riding this megatrend higher long before anyone was talking about AI.

This is exactly the kind of action you want to see in a healthy bull market.

The...

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[Weekly Gold Rush] Sentiment Check

December 2, 2024

Since gold futures hit our second target, the entire complex has undergone a corrective wave. 

While the market hasn't given us the all-clear signal yet, the correction seems closer to the end than the beginning.

Demand for gold worldwide continues to increase, and our intermarket analysis suggests the party is just starting for gold bugs across the galaxy. 

Moreover, our COT sentiment indicator is flashing a buy signal:

 

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[Weekly Gold Rush] Has This Ratio Bottomed?

November 25, 2024

*BREAKING NEWS* $BTC printing fresh all-time highs priced in every fiat currency is NOT bearish for gold.

We recently recorded a video with our in-house crypto analyst, Louis Sykes, to discuss the connections between bitcoin and gold

The relationship isn't perfect, but it would be irresponsible of us as investors to ignore the correlation between 2 of the most significant hard-money assets in the world.

Last month, we discussed the correlation between digital and physical gold becoming positive again. 

Before we knew it, $BTC had resolved its base and followed gold to new all-time highs.

This suggests to us the bull market is still young:

Hot Corner Insider

A Bullish Pattern Resolution

November 20, 2024

Thanks to everyone who joined us for today's Hot Corner Insider Weekly Strategy Session.

Here are the top three takeaways from the call:

  • Small-caps hold the line

The S&P Small Cap 600 Index $IJR pulled back to test former resistance, which is now acting as support.

Buyers stepped in to defend this critical level, leaving the post-election gap partially filled:

 

As long as prices hold above the prior cycle highs, this is a bullish pattern resolution.

  • Big-cap tech losing leadership?

The summer sell-off looks like the initiation of a new downtrend for the XLK/SPY ratio.

This is happening exactly where the ratio peaked during the dot-com bubble.

 

The current market playbook has shifted: smaller, more speculative stocks are stepping up as the new leaders while the...

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[Weekly Gold Rush] The Golden Gambit

November 18, 2024

Gold futures have been down in 6 out of the last 8 sessions since the winner of the U.S. Presidential Election was announced.

The US Dollar Index $DXY has been adding fuel to the selling pressure as it has screamed higher toward the upper bound of a multi-year range.

However, the dollar is entering one of its weakest seasonal periods of the year and should start serving as a tailwind for our shiny rocks.

And if the dollar is about to roll over, our equal-weight basket of precious metal stocks will likely resolve its multi-decade base and make new all-time highs:

Hot Corner Insider

A Brand-New Uptrend

November 13, 2024

Thanks to everyone who joined us for today's Hot Corner Insider Weekly Strategy Session.

Here are the top three takeaways from the call:

  • The riskiest stocks are embarking on a new leg higher:

 

Think small-caps, Ark funds, banks, and biotech. They’re all making new highs.

  • On Tuesday, the S&P 500 tested the election gap VWAP for the first time:
 

And then it did it again today. Buyers showed up to defend this level both times. As long as it holds, the bulls can keep running this short-term rally higher.

  • With crypto in "rally mode," BTC miners offer leveraged vehicles that can help add extra exposure:
 

In July, Coatue Management filed a 13G revealing a 9.2% stake in Hut 8 Corp $HUT. The stock is now completing a rounding-bottom formation. If it sticks the landing, this is a brand-new uptrend.

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[Weekly Gold Rush] Gold Bugs Take Cover

November 11, 2024

We recently discussed gold achieving its second target since it put the finishing touches on a massive base earlier this year.

It wasn't clear how the price would react to our target, but sure enough, the sellers showed up right on cue.

But the weight of the evidence continues to suggest this bull market has legs and it's better to spend our time looking for buying opportunities, not selling opportunities.

Let's talk about the recent price action and what it means for our portfolios: