Stocks Power To Highs. Palantir, Spotify, Interactive Brokers In Focus.

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0:24good afternoon everyone and welcome to stock market today for thursday september 18th it's alexis garcia here and stocks powered to new highs today after the fed eased interest rates And Chip's having a pretty good day on the news that NVIDIA is going to invest$5 billion into Intel. And here with me to help break everything down that you need to know about today's market action is IBD News Editor Ed Carson. Hello, Carson. Yeah, it's a lot. Trying to do my Newman. Hello, Carson. Hello, Lexi. Yeah, it's like I'd much prefer to break down the market than have the market break down. And it was definitely a strong day.

1:10Palantir, Spotify, and Interactive Brokers all flashed buy signals today. All right. Well, we'll get to those stocks in a minute. But let's just do a quick check-in on the major indexes to see how they finished. The S &P 500 finishing the day up 0.5%. The Dow up 0.3%. And the NASDAQ up almost a full percent. And small caps, again, having a great day, up 2.5%. So let me get our trusty charts going here and talk to me about what you saw with the current market action today. We'll start on the S &P 500 and powering to new highs. Yeah, all the major indexes and the Russell even hit new highs. So really strong.

1:52So while their gains run even, they were broad and, you know, we're all getting there. So just just getting above to all time highs. Yeah, a nice day two reaction to the Fed. that sometimes happens, especially since we really have less than an hour to really digest the Fed announcement and Powell's comments. Then there was also, you know, chips really rallied on this NVIDIA Intel news. And, you know, there just seems to be speckled or fervor. So the S &P up modestly, but at new highs. And, you know, we definitely saw it was more tech and small cap led, but broad strength out there. Yeah, let's take a look at the Nasdaq composite, Ed.

2:31Again, this one up almost a percent today, finishing in the middle of that trading range. Thoughts here? Yeah, it's looking great. Again, like all these indexes have sort of cleared this short term, you know, they had little consolidations that were pausing. So they aren't really extended yet. The NASDAQ is just getting to the edge of being maybe extended. So when you get to 5%, you start noticing it. It's not like, I even know, wouldn't even call it a yellow flag, just something that when you get over 5%, just something to notice. It's more like when you get to 7 % or 8 % about the 50-day line that starts to become, well, we're sort of due for a pullback, but a lot of strength, really hard to be upset.

3:10Let's take in on the Dow Jones Industrial Average. We don't want to ignore that one. This one also finishing up for the day, pulling above this 46 ,000 level here. Yeah. I mean, not much of a gain, but it was still enough. It was still chugging along. It's not leading the market, but when your laggards are hitting all-time highs, I think that's a pretty positive development for a market rally. And let's check in on market breadth because, you know, we've been looking at RSP hasn't been super strong, but today up about seven-tenths of a percent. So what is this telling you about the types of stocks participating in this rally?

3:54Yeah, I mean, it seemed like small caps and certain techs were leading in RSP. it did fine. I mean, it outperformed the S &P. It just isn't, you know, today, it just isn't at a new high, but it's almost there. It's basically at highs. And how about QQEW? That's the NASDAQ 100 equal weighted ETF. This one up about 1.2 % today. Looks like it's right at this buy point here of 140.24. Yeah, I mean, it hit a record high. That was an all-time high. Just a little over a week ago, So this was under the 50-day line and couldn't seem to get up there. So this was, again, this was a little worrisome in the fact that it was sort of stuck below the 50-day.

4:35But now the laggard, you know, sort of, you know, is now at a record high. A nice turnaround there. Shows how quickly things can change here, Ed. And let's take a look at the 10-year Treasury yield. This one ticking up today, seven-tenths of a percent. But what is this telling you in the wake of the Fed announcement? Yeah, we had more strong economic data. Really, the economic data this week has generally been pretty strong. Retail sales earlier in the week today, Philly Fed, the jobless claims came down a lot today. So yesterday, we briefly undercut 4%, then rebounded. I mean, you know, it's sort of weird, just like as we did late last year, when the Fed cut rates, and they did it 50 basis points back then, economic data almost immediately started coming in surprisingly strong for a while.

5:23So that's just something to note. Look, obviously the market didn't mind this, you know, this action the last couple of days. If it really moves up, it started moving up toward the 50-day line or, you know, and continuing on, that's going to be an issue for the market. Because I think clearly the lower yields were probably helping the market, helping housing, helping financials in some ways. But right now, this is just such a small balance. After such a big drop, I don't think it's affecting things. All right. Well, let's take a look at a few sectors here, Ed, starting with FFTY. That's the IBD50.

5:57You know, we've been talking about the run this one has had, growth names continuing to move up 2.2 % today. Yeah. And there's, you know, again, speculative names in particular, there's a lot of gains of 5%, 7%, 8%, 10%. And you're seeing that with this index here, a lot of strength here. All right. And we talked about chips having a pretty good day here on that NVIDIA Intel news. This SMH, that's the Van X Semiconductor ETF, up 3.8 % today. There were a lot of big winners that really you wouldn't have thought necessarily had anything to do with the NVIDIA Intel deal. A lot of really strong performers today.

6:40This is sort of out there, had a chance to buy maybe a few days ago. Now it sort of seems extended. On IGV, though, maybe there's an opportunity there. Yeah, let's take a look at IGV. That's software. This up about 1.9 % today, breaking above this cup with handle by point of 114.13 ed. Yeah, and I think it's either number one or number two in IGV is Palantir, which we'll look at. And that definitely helped. There are some other names that definitely had strong performance. So this one was one way to play it. If you felt like, I don't know, some of these names are extended, some things are a little down, this could be a way to play software right now is by going with IGV.

7:23Yeah, with the way the market's been going, Ed, we do see a lot of names that are getting extended. So maybe a good idea to check some of these sectors. But let's take a look at IBIT. That's I-B-I-T. That's the Bitcoin Trust ETF. This one up about 1.6 % today, but falling from highs to end the session, Ed. But yeah, talk to me about Bitcoin and what's been going on with IBIT. Yeah, I mean, so it's regained the 50-day line and you could have bought it when it did that. But now it's sort of above these short-term highs. This would be seems like a good place to buy it because, you know, it often finds support.

8:01The 50-day line comes up and then can pull back. So it just feels like early entries are a good way. I mean, I tend to prefer early entries anyway, but I think with Bitcoin, especially given that, you know, you can see there's definitely been times where it'll go up, hit new highs and then pull back. So it just feels like early entries are the way to go with with this name. And so, yeah, there was this and a lot of crypto related plays had a strong session today. If your organization isn't managing its data with Everpure, then it's likely scattered all over the place. My lord, three days have I ridden to bring thee warning.

8:35The records thy great AI machine requires are strewn across five kingdoms. Yeah, the Everpure data management platform unifies data so you can always find it. No messenger needed. No more running around? Get out of the data dark ages with Everpure, a new era in data management. All right, Ed. Well, let's take a look at some of those individual stocks. You mentioned Palantir in the software sector. This up 5 % today, especially after yesterday had a nice upside reversal after flirting with that 50-day line. So what was the news here driving this stock? I mean, there's some UK deals that seem to be happening there, finalized, maybe some expansion.

9:22And it was just a strong day for AI plays. Let's just be clear. And this is one of the biggest AI names out there. So what a nice test of the 50-day line then to come through. You could have used the recent highs from last week as an entry. There was definitely time to do that. It's still actionable, though it's already getting up there, I'd say, from the short-term highs. And it's 9 % versus a 50-day line. So it would have been better probably to get it just a little bit lower, more like 174, 175. This is just one of the best performers. If it's not the top performer in the S &P 500, it is really, really close.

10:01And it was number one last year. Accelerating growth quarter after quarter. You know, it's a high valuation stock, but it's delivered with those profits. And it's in just such great areas right now of the market and it's dominating. This was another opportunity to get involved. Yeah, and we can see some of the fundamental scores here, really high ranking, but kind of middling around this accumulation distribution rating here, Ed. So what does that tell you? Yeah, I mean, there was some selling, you know, and went on the downside when the market, when, you know, when Palantir came off. So that is a potential concern.

10:37You know, if you look on the weekly, let's take a look on a weekly and see what the AD, what the up-down volume is. I think that's also a little low. So that's a good point. That's 0.9. You'd like it to be at least 1.0. Higher the better, like 1.5, 1.8, 2.1. So today was an above-average volume day. That is something to keep in mind, that there haven't been a lot of high-volume days or weeks for this name in a while. Ed, well, let's go take a look at Spotify. This one enjoying a nice day up 3.8 % today, peaking closer to this 740-830 traditional buy point here, but maybe an opportunity to get in off of this 50-day line bounce.

11:22Off the 50-day line, if you draw a trend line from the top of the base all the way at 75, it basically sort of works and then draw it all the way across. And it sort of works if you did the same thing just with the handle. So that downtrend line and there's a short-term high within the handle, it crossed both of those, the trend line and the downtrend line. So those were reasons that you could have bought it. I think earlier this week they made some changes to their music service that investors seemed to like. I don't know if viewers like it, but that was a positive. You know, this was, as you say, it's still relatively close to the 50-day line.

11:59I think this was the time you could have bought it. The volume was pretty strong today. The accumulation distribution rating is a C-, but the up-down ratio, if you look on a weekly chart, that's at a 1.2. So there's a little bit more strength in that in a little bit more recent time. So that, I think, is reasonable. You know, this is one that you'd figure people aren't going to quit, you know, like in mass, you know, just like they won't even remember that they've paid for their subscriptions. So this seems like something that would seem relatively safe in terms of the growth. But if you scroll down, I will say that the earnings and some of the numbers, it is choppy.

12:38I'm not sure. Maybe it's a gap, maybe it's some currency effects, but they'll have these huge numbers and then there was a loss and then it's supposed to be huge profits. So you just have to know that the quarterly numbers, you know, may not turn out the way you hope. The market sort of knows that, doesn't get shocked entirely by it, but it's still something that investors should be aware of. Good to know, Ed. And let's head on home here with Interactive Brokers. That's IBKR. I'll switch back to the daily here. This one, a gain of 4.1 % today and another retake of the 50-day line here. Retake of the 50-day line, they got above some short-term highs.

13:19You know, there was a downward sloping trend line from the top of the base, the same thing. Volume wasn't tremendous today. That's one thing, but a really nice gain. It's pretty clear. I mean, you have these three reasons to get an early entry today. So I like having multiple reasons to buy signals on that. And that's what this had. You know, it's formed a nice little tight base just above sort of the top of this prior base. You know, the top prior base was at 5913, ultimately the top of that prior base. And then we bottomed here with this base at 5994. So this is basically, you know, a base on base kind of formation, even if may not technically get into that definition.

13:58And that's just nice action there. Obviously, it's a big, big online broker. They're doing more things with prediction markets. A lot of that, there seems to be a blending of the world between brokerages and gambling, you know, and such. But a really, really strong performer here, solid performer. Growth picked up in the latest quarter just a little bit. So something you could get that was outside of AI, but it's still a solid, solid growth performer. And we can see the industry group here for financials doing pretty well at 28 out of 197. So definitely in that top quarter there that we like to look at, Ed.

14:35But thank you again for all your spot on commentary. We appreciate having your insights. And that wraps it up for today's episode. We'll be back with more market analysis starting tomorrow morning with IBD Live. You can head on over to investors.com slash IBD Live for all the details there. We have Ms. Schneider joining the team tomorrow. So that will be an exciting one to watch. And Justin Nielsen and Mike Webster will be back tomorrow after the close for their special extended version of Stock Market today. So you won't want to miss that. And thank you so much for watching. And we'll see you back here after the close.

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