Nasdaq Extends Gains Ahead Of Fed; Ryanair, MongoDB, Shockwave Medical In Focus | Stock Market Today

TL;DR

NASDAQ leads the market higher, closing above a regression channel line, while stocks remain in extended territory.

Transcript

thank you thank you hey everyone welcome to stock market today for Monday June 12th it's Ali Corman Justin Nielsen here with a breakdown of the action today where stocks were undeterred by the upcoming CPI report and fed meeting Justin the NASDAQ coming in with another strong day yeah it just goes to show you know you can call it extended but it ca... Read More

Key Insights

• 🙃 The NASDAQ's extended rally highlights the potential for further upside, despite being above the 50-day moving average line by 8-10%.
• 🧑‍💻 Market breadth is improving, with more sectors participating, including tech, home builders, and industrials.
• 💬 The upcoming CPI report and the Fed meeting, particularly Powell's comments, will significantly impact market sentiment.
• 🛀 Ryanair, MongoDB, and Shockwave Medical are showing interesting technical setups, providing potential trading opportunities.
• 🔈 Positive volume trends, with lower volume during consolidation, provide confirmation for potential breakouts.
• 😷 The presence of new factors, such as AI reliance on data storage (MongoDB) and innovative medical treatments (Shockwave Medical), adds to the bullishness of these stocks.
• 👶 Caution should be exercised when adding new exposure, given the upcoming macro-related risks and extended market conditions. Incremental moves and managing positions are crucial.

Questions & Answers

Q: Is the market extended, and is a pullback likely?

The NASDAQ and its representative ETF, the QQQ, are about 8-10% above their 50-day moving averages, indicating extended territory. Though a pullback is possible, positive market internals and breadth suggest continued bullishness.

Q: What factors support the market's bullishness?

The market has seen increased breadth, with sectors like tech, home builders, and industrials participating more actively. Equal-weighted ETFs, like RSP and QQEW, are also performing well. Advancers continue to outnumber decliners, signaling market strength.

Q: What should investors do in the current market environment?

Investors who have benefited from the market's strength in recent weeks may consider adding exposure cautiously. However, the upcoming CPI report and Fed meeting pose potential risks, so new buyers should be cautious about chasing extended stocks.

Q: What are some interesting stock setups in various sectors?

Ryanair (RYAA), a leading airline stock, has shown a recent breakout and consolidated tightly near highs, making it a potential stock to watch. Software stock MongoDB (MDB) is also exhibiting strong technicals, with a recent gap-up on earnings and a tight consolidation. Shockwave Medical (SWAV) is forming a handle near the significant $300 level.

Summary & Key Takeaways

• The NASDAQ performed strongly, leading the market with a 1.5% gain, closing above a regression channel line.

• Market internals show positive signs, with breadth improving, advancers outnumbering decliners, and more participation from various sectors like tech, home builders, and industrials.

• Key events to watch this week include the release of the Consumer Price Index (CPI) report and the Federal Reserve (Fed) meeting, particularly Fed Chairman Powell's comments on potential rate hikes.