NVDA’s comeback gives reason for optimism on Semiconductor stocks

Short-term trends in US Equities remain bullish, and Monday’s push higher on above-average market breadth gives some confidence about a coming push back to new monthly highs. While a rally over February peaks should happen this Summer, it’s hard to make a technical call for an immediate breakout.  Both SPX and QQQ likely will find resistance near February highs that allows for consolidation in late June ahead of a push back to new all-time highs. Meanwhile, both Treasury yields and the US Dollar are likely to begin trending lower in the weeks to come. While some of the Haven trades like Japanese Yen, Gold turned briefly lower on Monday, I’m still bullish on both for progress in the months to come. I favor Industrials, Financials, Technology, and Utilities, while Emerging markets also have appeal given the drop in the US Dollar. For Tuesday, all eyes are on NVDA, which has improved its technical situation and is likely to help the Semiconductor sector begin to strengthen more sharply following a difficult early-year decline.

Monday’s push higher on above-average breadth suggests that last week’s consolidation has run its course and a move back to new monthly highs likely can occur over the next 1-2 weeks.

While the combination of the Elliott-wave count coupled with DeMark indicators and cycles shows the possibility of minor peaks in mid-June, for now, Monday’s strong finish for US Equities likely allows for an uninterrupted rally back to challenge and briefly exceed May peaks.

checkout-thomas-lee image
checkout-logo image

Become a Member To Access Fundstrat Research

Fundstrat Direct gives individual investors access to Tom Lee's research, previously only available to banks and hedge funds.

Monthly

$199/mo

First Month Free

Join Now

Annual

-15% $2,028/yr

List Price $2,388

Savings: $360/yr

Join Now

Why Join Fundstrat Direct?

Fundstrat Direct helps you invest confidently with the same research banks and hedge funds use to navigate the market.

Daily Strategy Icon

Daily Strategy from Tom Lee & Team

Stay ahead of consensus with daily updates on key developments & catalysts and opportunities ahead.

Real-Time Market Alerts Icon

Real-Time Market Alerts

Analysis on market-moving events and actionable opportunities delivered instantly from us to you.

Curated Stock Lists Icon

Curated Stock Lists

Choose the portfolio that best suits your investment style, preferred asset class, and time horizon.

Monthly Market Update & Top Ideas Webinar Icon

Monthly Market Update & Top Ideas Webinar

Attend engaging webinars with Tom & team featuring our top ideas and near-term market outlook.

Daily Technical Strategy Icon

Daily Technical Strategy

Receive tactical opportunities, actionable signals, and fundamental analysis from our proven research team.

Live Analysis on Your Holdings Icon

Live Analysis on Your Holdings

A monthly webinar featuring live analysis on member-submitted stocks and questions.

Disclosures (show)

Events

Trending tickers in our research