Alphabet [NASDAQ:GOOGL], the parent company of Google, released a strong set of numbers and leapt 10% in Thursday’s session.
Their jump in market cap on the day was equivalent to the combined market caps of Commonwealth Bank [ASX:CBA] and National Australia Bank [ASX:NAB].
Bonkers.
No wonder the S&P 500 seems bulletproof amid the uncertainty created by the war in Iran.
Is the US market telling us that absolutely nothing can derail it?
If it heads much higher, there won’t be any resistance levels to speak of, and a vertical run could be on the cards.
The daily, weekly, and monthly trends are all pointing up again, so I have to keep any bearish feelings under wraps until serious selling emerges again.
Our market has been performing much weaker than the US, as I mentioned last week.
But the S&P/ASX 200 [ASX:XJO] remains stuck in a 10-month range. It can go either way.
Source: TradingView
[Click to open in a new window]
The long-term trend is up, but March saw a monthly sell pivot confirmed, which is a short-term headwind.
In other words, money ain’t growing on trees in the ASX.
You have to fight for every dime.
If the US is ready to roar, we may be close to a buy signal in the beaten-up software stocks least likely to be disrupted by AI.
I sent out a buy signal on two in the US this week.
The stalemate in the Strait of Hormuz is a snoozefest for the market right now, but oil prices are edging up into the stratosphere.
The market will ignore that until it can’t.
Trying to work out whether Iran or Trump is more stubborn is not easy. With US stocks at all-time highs, Trump isn’t under any pressure.
But things will start breaking elsewhere if the blockade drags on.
I think the market is assuming that sense will prevail in the end, but some uncertainty remains.
Charlie and I take a detailed look at one of the most beaten-up software stocks on the Nasdaq. It just leapt 25% after the close on the release of a great set of quarterly numbers.
Could this be the starting gun for a major recovery in the stock?
Check out the Closing Bell video below to find out.
We also run the ruler over a bunch of viewer-suggested stocks because it is the first Friday of the month.
We cover lithium, rare earths, gold, oil and gas.
Regards,
Murray Dawes,
Retirement Trader, International Stock Trader and
Murray’s Trading Room
PS: If the Closing Bell chats have been sparking ideas, imagine what we can do when we sit down together every week. Inside Murray’s Trading Room, you’ll have the opportunity to get direct feedback on trades chosen by you and fellow members, go deeper into my trading model, and join live or watch the replay when it suits you. Join today and use code CLOSINGBELL to get 50% off your first year!
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