Summary
Highlights
The market is currently making new all-time highs, fueled by bullish sentiment. However, the speaker expresses concern about the sustainability of this rally, suggesting a potential cooldown in the coming weeks. He advises against front-running bearish trades but warns that an overdue pullback could lead to a rapid decline.
Palantir is showing a clear sign of distribution with higher highs and lower lows, indicating a lack of clear direction and potentially signaling the end of its upward move. This 'diamond pattern' often precedes a break to the downside. The upcoming Q3 earnings in two weeks are identified as a potential catalyst for a definitive direction.
A detailed analysis of the SPY's weekly chart reveals that the market is significantly overdue for a 4-6% correction. Historically, such corrections are healthy, but the current rally has stretched for 175 days without one, indicating an unusual and potentially unsustainable upward trend. Traders are advised to be prepared for this retest of the 20 EMA on the weekly chart.
Alibaba has seen an 85% run in recent weeks, joining the AI rally. While it's nearing natural resistance between $200 and $225, the move is not considered over yet. The video highlights 'measured moves' in Alibaba's past, noting that the current run is consistent with previous 84-86% gains, suggesting a potential consolidation or pullback after reaching its expected target.
AMX has been a significant winner since July, running from $4 to $13. An inverse head and shoulders pattern projected its target between $15 and $16, which the stock is now approaching. While a clear path to $16 is expected next week, traders are advised to raise their stop losses and consider taking profits as the move is extended, and bears are likely to pounce at these levels.
Serve has been moving slower than expected but remains bullish, with a target of $17.50. The speaker has tightened his stop-loss, emphasizing that if Serve doesn't reach $17 soon, it could indicate underlying issues. It's considered 'go time' for Serve next week.
APLD has been a huge winner, but its current move is extended, similar to the SPY. The video outlines a potential target between $28 and $35, which fulfills a previously called measured move. While a pullback to the $10.60 range would be an ideal reload opportunity, there's no guarantee it will happen. APLD's earnings on November 6th could be a game-changer, and investors should be on high alert for its price action between $28 and $35.