Stocks Power To Fresh Highs; MongoDB, Nu Holdings, SoFi Technologies In Focus

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0:39good afternoon everyone and welcome to stock market today for tuesday october 28th almost the end of october hard to believe on today's show we'll take a look at an eight-tenths of a percent gain for the nasdaq composite yet another all-time closing high and we'll talk about whether They're starting to look extended from its 50-day moving average. Up day for the market overall, small caps lagged a little bit. But before we get into all that, let me bring on our news editor, Ed Carson, who's got three stocks to watch. Good afternoon, Ed. Hey, good afternoon, Ken. I want to take a look at MongoDB, New Holdings, and SoFi Technologies.

1:20All right, three good stocks there. Let's check those out shortly, but let's start by taking a look at the major indexes here. And I'll start by taking a look at the NASDAQ composite. And you can see the NASDAQ composite, like I said, up 0.8%. And I checked breadth at the end of the session, and it looked like it was about, well, it was less than 2 to 1 negative, but it was definitely negative. So that was a little interesting. Let's take a look at the S &P 500. Up a lot less than the NASDAQ, up less than three-tenths of a percent at this point. I mentioned small caps lagged a little bit. IWM here getting some early resistance near that 250 level.

2:13And then let's take a look at the Dow Jones Industrial Average, which also rose, closed near its session low, up four days in a row. Another all-time closing high for the blue chip index. But, Ed, when you eyeball a daily chart of the NASDAQ composite, you see four really nice up sessions in a row here. But it seemed to be starting to getting a little stretched from its 50-day moving average. I think at last check it was about 6.7 percent above the 50-day line. Is that reasons to get maybe a little concerned about a pullback here or not? Yeah, I mean, it's something to watch for. I mean, it certainly could get more extended and it has.

2:58Sometimes it gets 10 % extended. So it's just the higher it goes, the greater the risk of a pullback and the greater the risk that the pullback would be larger. Obviously, you can imagine a pullback to the 50-day line would look a lot worse now than it would a week ago. We could go, yeah, that's easy. We could easily test that. So it's something to keep in mind. And it's also we have so much news in the next three days. I mean, tomorrow we have the Fed. We have Microsoft, Meta, and Google reporting tomorrow night. And then we have Amazon and Apple the next night. And we have Trump and Z meeting probably on Friday.

3:33Now, they may do well, but the expectations are pretty high. So when you get extended, it's just more like, you know, just make the risk. So if anything is negative, or even if it's just okay, you could imagine. I'm not saying, oh, no, watch out. I mean, it's hard to get too upset when the market's hitting record highs. Breath is a concern, a bit of a concern, but that's just something. It's a little extended, just something to watch for. Yeah, yeah. I was surprised to see negative breath on the NASDAQ and the S &P 500 today. It wasn't overwhelmingly negative, but it was definitely, you know, less than two to one negative on both exchanges.

4:11I mentioned the S &P 500. That looks a lot like the NASDAQ, also not as extended from the 50-day moving average. But you mentioned a lot of big headlines. Probably not expecting any big surprises from the Fed Wednesday at 2 p.m. Pacific time. What could the Fed say that would surprise the market in your view, Ed? Or is this just going to be a nothing burger? It could be a nothing. I mean, but sometimes I think that the Fed says nothing and the market goes a lot one way or the other. It's going to be about the rate outlook. A couple of things. One is that they might stop letting the bond, you know, bond sell, either selling bonds or letting the bonds and their huge assets come off.

4:57So the quantitative tightening that may end. And that would be a little bit of a boost. And then it's just what Powell says about future cuts. And keep in mind, after we get past December, pretty soon Powell is going to be gone. There's going to be a big shift in the Fed. So, you know, we don't know the outlook of how things will go. The 10-year treasury yield is pretty low. The two-year yield, that's pretty low. So there's expectations. Again, there's a lot of expectations for things. So you never know if there could be a sell-the-news kind of event. But, yeah, I don't think that we're going to be surprised by what the Fed has to say tomorrow.

5:29I'll just take a look at that. I guess if it does, we'll be surprised. Yeah, yeah. Let's take a look at that equal-weighted RSP. And here is where you see that problem with breadth in the market because the S &P eked out a modest gain today, but the equal-weighted RSP down nine-tenths of a percent. QQEW, which is the equal-weighted version of the NASDAQ 100, that also lagged down three-tenths of a percent. So that is where you see the weak breadth in the market. We've been talking about growth stocks doing the heavy lifting here. Innovator IBD50 ETF, nice visit and test of the 50-day moving average last week right here.

6:16And it has rebounded, reversed slightly lower today. But growth stocks continue to look pretty good in this market. SMH, I saw Qualcomm down a lot after that big gain yesterday. but uh smh looking uh very strong here up another nine tenths of a percent today to an all-time uh closing high and then uh smh yeah on smh nvidia ceo came out said bullish things here's new products or nvidia surge it's almost at five trillion so honestly it probably may have risen by qualcomm's market cap i don't know but it's like one of those kind of things broadcom broke out. The only reason we're not looking at Broadcom today is because we looked at it.

7:01Oh, it looks like, you know, well, that's, it actually rose 5%. So that's a little bit of a misnomer. It's not moving after hours, I think. And Broadcom broke out. There's so just, there's a lot of things in there. Again, a lot of positive things out there. There was so Broadcom, NVIDIA, Microsoft, Tesla. So you're seeing mega caps really were leading the market today. And so FFTY why it was down, but it was some of the mega caps are moving. And again, some of them have earnings coming up very soon. So I just wanted to bring that up. No, I appreciate it. NVIDIA was in Washington, D.C. today for another GTC conference.

7:39And he was joined by Alex Karp from Palantir Technologies, the Palantir CEO. So good interview with both of them side by side on CNBC today. Ed, you also wanted to take a look at XBI. And this is a biotech ETF that we've had on leaderboard for several weeks, right? For several weeks, I should say. Been a very nice gainer in the model portfolio. Biotech's still doing a lot of heavy lifting here as well. Yeah. And then... And then the GLD. Let's take a look at GLD under more pressure today. Boy, we saw gold stocks really hammered yesterday. They extended losses today. GLD closed off lows, but still down seven tenths of a percent on the day.

8:34All right, let's take a look at some interesting stocks here in the software sector, specifically the database software group. Let's take a look at MongoDB. This is really a good example of what it looks like when a stock sets up in a base. What do you see in here for MongoDB, Ed? Isn't home where we all want to be? Reba here for Realtor.com, the pro's number one most trusted app. Finding a home is like dating. You're searching for the one. With over 500 ,000 new listings every month, you can find the one today. Download the Realtor.com app because you're nearly home. Make it real with Realtor.com.

9:16Pros, number one most trusted app based on August 2025 proprietary survey. Over 500 ,000 new listings every month based on average new for sale and rental listings, July 2024 to June 2025. Yeah, I mean, look, it made a nice move off of earnings last time, you know, last earnings report. And then it held those gains. It added to it and then it's gone sideways. The 21-day line caught up. The 50-day line is starting to close the gap there without Mongo falling at all. I mean, it's really going sideways. So it's sort of teasing a buy point. Yesterday it did. It's sort of above, right around some early entries.

9:49So, I mean, it's just in good shape here. The growth has been strong. It's supposed to slow down. So that is something to note. The other thing is that MongoDB is a pretty close partner of Amazon. So it's possible that Amazon's comments, especially about Amazon AWS, there could be things that influence Mongo to the upside or downside. So even though Mongo isn't reporting, so many other places, this is something that could. Again, it may not, but it's definitely a relevant report for this name. But really strong performance. I think they're kind of weakly. It's gone on big runs. It's also had some weakness along the way.

10:28So it's come back for a long slide. But it's sort of setting up. You could almost treat this flat base as part of a base that went back to the end of last year. So it's nice to see that consolidation here. So, you know, if it moves out, that would be buyable. It's just not, but it's not there yet. You know, you mentioned these large cap tech earnings reports due this week. I know we have Google and Microsoft due late Wednesday, and then Amazon and Apple, you mentioned. Also Cloudflare all report Thursday after the close. And what these mega caps, you know, say about AI spending could send ripple effects throughout the market.

11:13I mean, this AI net has gotten quite, quite wide. Right, Ed? Yeah. I mean, just to put in perspective here, you know, we have like Microsoft, Meta, Google and Amazon alone. They have a market cap of 11.5 trillion. Maybe it's closer to 12 by the end of today. You add in just NVIDIA, Broadcom, Taiwan Semiconductor and AMD, it's over 20 trillion. So then you add in all the other chips, the hardware, and then the infrastructure plays, including heavy construction, all these energy plays. I mean, we're just going on and on. It is a massive influence on the stock market and the economy. So, again, what those hyperscalers say in the next couple of days is really important.

11:54It could be great news. It could be great news. And we've seen positive news from VRT, Celestica, some other things. So there's positive signs. We keep on seeing these great deals. It all suggests that we're going to get great capital spending and great numbers out there. But yeah, just absolutely enormous importance for the market. Yeah, well, the stock market is certainly optimistic that we're going to hear pretty good things from large cap tech starting tomorrow after the close. We'll see if that pans out. Let's venture over to Brazil and take a look at a fintech new holdings, ticker NU. Sort of a big, big, long base here.

12:37Recently came down and found support at the 10-week moving average right near all-time highs. Another stock with outstanding fundamentals here, Ed. Yeah, and I like how this base is formed. You can almost treat this as a handle to that huge consolidation. That often happens. You get these big, messy consolidations and, you know, it doesn't look that good. And then if they work, well, then often what will happen is it'll form a handle near the top or a base just above the top. And this is sort of in between. And, you know, there it is. Now it's a much tighter consolidation because that was 44 percent deep.

13:10How deep is this one? But it looks like it's got to be a more of a flat base, you know, just a lot smaller. Yeah. 11 percent deep. Yeah. So that's much better. Or, you know, Brazil stocks, after some rough things with tariffs, there's more positive signs there. So on that side, Argentina, the elections went in a way that likes for the markets. Even though it's not particularly important for new holdings directly, it's still relevant to have, you know, one of Brazil's biggest partners doing better. So, yeah, this one's setting up nicely. The earnings growth is strong. I think if you go to a daily, I mean, it already bounced off the 10-week line, 50-day line, but now on daily, it's just coming up toward a buy point.

13:48And, you know, that would be something that could, you know, be an offering here. It'd be great if it paused a few more days, you know, and formed more of a handle, even though flat bases don't have it. It's just something there. And it's also nice to have it like, you know, the biotechs are an example. There's aerospace is an example. But here's an area where, you know, it's growth. There's real reasons to be interested in it, but it's not so tied to AI. So it's not like, so you have all your stuff in AI. If something goes wrong, not saying new holdings would have a great time if AI stocks plunged, but nonetheless, it's nice to have a little diversification with leading stocks.

14:27Well, glad to hear you say that because we did add a little bit of financial exposure to the leaderboard model portfolio today. We did not add new, just added a financial ETF just to kind of spread out our exposure. So New Holdings looking pretty strong here. Similar company, SoFi, I mean, New Hold operates this huge digital banking platform in Brazil. In the U.S., SoFi is doing very well with its financial platform, SOFI. SoFi, nice reversal hire and looks like a breakout over the 30 level. Yeah, this is often why it's nice to wait a few minutes. I think if you look at a five-minute, there was definitely a lot of all-telling.

15:16It probably went on a little bit more than 30 minutes, to be honest. It went for a couple hours. But, you know, it opened higher, it came down. But then it, you know, I sort of think that when it went back above, you know, yesterday's close, it sort of had a little mini-handle intraday there around 30 or just above 30. You can sort of see around late morning. And that seemed to be just an opportunity where people could have gotten in. Not that you had to. It's a volatile stock. You know, the stock has some things in there. Real strong growth, though, you know, just a nice continuation. It's at the edge of a buy zone.

15:49The relative strength line's at a new high. It's not going to be a blue dot because this consolidation wasn't long enough. But this feels like sort of like the first time it's really had the closest thing to a base in many months. So, again, definitely a wild play up and down on a daily or intraday basis. But really nice action. A lot of good things about this fundamentally. Really nice technical move for SoFi. And you mentioned great growth here going on. You can see the top line growth 20 percent a couple of quarters ago, 43 percent last quarter, and then 38 percent top line growth that they just reported.

16:31All right. So, Ed, if you're a growth investor, maybe you raised some cash in recent weeks. You might find yourself 50%, 60%, 70 % invested. I mean, would you say this is an environment that's easy to find new buys, or do you have to be particularly discerning at this stage of the game, still finding actionable? I mean, we looked at three stocks today that look pretty good, but are these the exception and not the rule or still seeing a lot of opportunities out there? I think it's more limited. I mean, I think there's definitely things and you can find them. It's not like, you know, but it's not this amazing amount of things.

17:11And we had a short look. We came out of a short consolidation range. It wasn't like, so not tons of bases. And some of those stocks already moved out on Friday and Monday. So by now, it's a couple of weeks here. Yeah, just a couple of weeks. It felt like forever during those two weeks, but it was just a really short period. And I think that, you know, with the Fed and with all these earnings and with that, you know, you may want to be like, how much do you want to be buying tomorrow morning ahead of so much news? That's the only thing, again, just in the very short. I mean, it's just, you know, we talk about, oh, there's big news weeks, but man, this is a big news week.

17:47And it's not like it's really slight next week. So it's just something if you've done some buys. And again, I'm not going to fault anyone who sees a buying opportunity tomorrow morning to do that. But I just I'd say like it's make sure it's incremental. And this is definitely a time to be engaged and be ready to step in if things go well and step back if they don't. Very good. Well said, Mr. Carson. Let me go ahead and stop my share. And as I was going to go over just a few earnings that came in after the close. I'm sorry. Yeah. Always forget the after hours earnings reports here. Let me see if I can – might not be able to find this.

18:23Oh, yeah, it's still there. Okay. All right. Obviously, these things are early, and we'll see. They haven't had conference calls yet. But STX, Seagate, you know, that went on a huge run. You know, it's – we'll see. So it's bouncing today after earnings. Visa, it looked like I beat views narrowly. Visa is – and MasterCard will report tomorrow morning and Western Digital Report later this week. So those two are relevant. But NBIX, NeuroCreen Biosciences, you know, that's sort of all quietly come back and it's at the top of consolidation. It's up. Bloom Energy, one of the super hot energy stocks.

19:03It looks like a couple of times might be blowing off and nope, it just keeps on going. And it's moving higher today. And Modine, a little bit, you know, it seemed to be views and I think it guided higher, but MOD was down last. And again, I wouldn't be surprised to see a lot of things shift around, but this was doing well. Now, maybe expectations were high because this is sort of the space with comfort systems and others. So maybe it's just giving up some of those gains. It just wasn't enough given what some others have done. But those are some big earnings and there's a ton tomorrow morning in addition to all the things that we talked about, you know, the big tech earnings.

19:38It's the big week. Well, as usual, we'll have a lot to talk about in terms of earnings on IBD Live tomorrow morning. And I will be your host taking over from Ed, who was in the chair today. So Ed, as always, appreciate your insight. Thanks very much. All right. That'll do it for today. And folks, if you haven't checked out IBD Live yet, this is our hour and a half stock market show. So every morning we get things underway at around 9.20 a.m. Eastern time, just before the market open. We talk about economic data, earnings reports, leading stocks, actionable stocks. So lots of good information. So be sure to join us if you haven't checked it out yet, investors.com forward slash IBD live.

20:34That will do it for today. and I will be back here tomorrow with Ed as well for another Stock Market Today video. Until then, have a great afternoon, everyone, and we'll see you tomorrow.

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