Folks, we've got a lot to discuss as markets break yet another record high. we need to go through the data to explain what is going on here because we have been in the situation dozens of times before and we're going to pull up the historical data and explain what is likely to happen next. Then for the main Entre we need to discuss the top big Momentum tech stocks that are screaming by Bye by right now, ones that you might want to consider loading up on because there might be a lot more momentum coming right around the corner. Okay folks, so as we hit record high after record high, it's a pretty damn exciting time to be a stock market participant.

and over the last few weeks and months we've gone through many of the data points that show that average returns in an election year are Hot average returns when the FED pauses and the leadup to start cutting rates is Hot average returns when you get a new high after 500, trading days are hot, and we've even talked about how the FED turned back on the money printer to an extent that it hasn't done for two years, allowing money to flow all over the place. But here's one more point that you might just find kind of interesting: The average communative S&P 500 total returns when you invest on any day versus invest at all-time highs is very, very different. and this might surprise you whether you are talking about the one year the threee or five years average returns are higher if you bought at all-time highs instead of on any day. Sounds counterintuitive.

No, Well, this is something that you could call a Momentum Snowball Effect If you buy as it's snowballing, well, your snowball is going to get bigger now. I Know the analogy isn't perfect because snowballs tend to go downhill and we're talking about stocks going up. But you get my point point. You catch my drift.

You could buy a stock any day you want, but if you buy it when momentum is brewing, well, you're more likely to get more momentum from most stocks in the stock market and especially the S&P 500. Well, every time you get to a new all-time high, Well, it's very rare that it breaks the previous resistance from the previous high and then just stops there. Almost always it builds on top of it and the previous resistance becomes a new support Supportiv As they say in Spain Right now, everybody in their mother is saying, Do Not Buy The Stock Market This is the most expensive, overvalued stock market in history. When have we also heard that? Well, at every other all-time high? Where are those all-time highs now? Well, lower.

You have to understand that the stock market and the economy are two different things in stock market that can be pumped to higher and higher highs. All you got to do is turn that money printer on in a few other variables and Boom People shouldn't be saying oh, it's too expensive, People should be saying yay, it's getting more and more expensive. Let's ride the momentum and then risk, manage and take our profits when the momentum stops. Now if you remember, back in 2020, we got a massive drop and everyone was panicking, and then the FED said, let's go ahead and pump tons of money into the market.

What happened Then well markets got pumped, the stock market started going up really really really really quickly, and all the financial commentators kept saying hey, this doesn't make sense. Stock market should not be going up because the economy is shut down blah blah blah blah blah. But again, this is the thing. And this is the lesson that you have to learn if you have a leaky gas tank.

but you're filling up that same gas tank at a higher level, a higher rate than is leaking out. Well, the gas tank is still going to go up and it's the same thing with the stock market. You PP enough money into the system that it forgives all of the leaks and the economic problems and all that kind of stuff. Well, guess what markets go up.

Same thing with the economy by the way, and consumer spending. Just look at what government is spending. Look at what the FED has done the last couple of years with all the money they put into the system way way more than they took out. Look at how much money the government has overspent and how many new jobs were created specifically to work for the government.

Over the last one two 3 years, all of that is pping into the economy and is making it look like things are great when of course on the other side there's a big leak coming out from down here, but you can't see that because things are popping up. and that is why right now it's such a unique situation. Now where is the pumping going so far? Well, largely the Magnificent 7, your alphabet, your Amazon, your Apple, your Meta, your Microsoft, your Nvidia, and your Tesla Those are up about an average of 65% Since the S&P 500's most recent lows hit October 12th, 2022, the S&P 500 during the same time span is only up about 35% which in and of itself I mean 35% is a lot, but but the Magnificent 7 almost double that. But even amongst the Magnificent 7, there's a lot of diversion.

With Nvda, for example, up over 400% meta up 200% Microsoft alphabet, apple, and Amazon all coming in under 60% These charts are from The New, York Times By the way, now for those of you who remember that 2020 Market cycle, well, you know that this is how it plays. You might remember that in that cycle, Tesla was one of the first ones to really come out swinging and as the rising tide of capital filled in the rest of the market, the rest of the big tech stocks had three, four, five even 8X The rest of the Market's performance and the leader Tesla had some 10x plus the returns of the rest of the market. So that is why Big Tech is such a killer right now to focus on and why Nvda also has a lot more momentum coming out as markets continue to fill out and money continues to pump in, the overall sea of equities will get a lot of pumping of capital. But but the Magnificent, Seven and specifically some of the leaders there are going to be disproportionately allocated into just like they've been.

and then after that happens, you're going to start seeing more capitalization of the smaller S&P 500 companies. But right now we're in a really, really big, powerful Big Tech cycle as they they break out to newer and newer highs and they make new and new records. And that is why Big Tech right now should be your main focus when you break out into all-time highs driven by Big Tech and momentum is brewing like we've seen in previous history of Big Tech breakouts. Well, that is when you want to be focused and ready with your eyes locked on huge risk managed profits.

I Could feel my mouth watering just saying. all this folks I'm so excited you guys better hit that ravishing like button and subscribe so that you don't miss any of our videos cuz we got some good stuff coming out in the next couple of weeks months. The truth is though, right now that everyone's looking at these record highs and they're like oh, I cannot play this I cannot trade this I Want to stay far away? but they're ignoring history. History shows that we continue to pump when you do get the massive dump that comes after every single pump.

Well, who cares because you already got and you wrote The Wave up and then you locked in your profits. Maybe you didn't get out at the perfect top? Of course not. But but you locked in a lot of profits so that is the goal right now. The goal isn't to just sit back and watch as newer and newer and higher highs get met.

Okay, so what are some of the big Tech plays right now? Well, let's talk. Microsoft The soft of Micro Msft just broke out into a new all-time high today. Yes, another new alltime high. Microsoft's earnings date is January 30th and markets are super duper excited.

Microsoft is moving so aggressively right now on the same reason that Nvda is moving so aggressively. A foundation of real money-making real business, but also a massive massive hyping on the AI Trend Yes, hyping is a real word now just look it up in the Charlie dictionary the Charlin are. but seriously folks, Microsoft has a pretty insane Suite of products whether you were talking cloud Office personal Computing Even search and news advertising I Mean you've got every major hot sector covered Microsoft is no sleeper in the here and now, but from an AI perspective Microsoft is on a whole other level with Nvda. You get the chips, but with Msft, you get the software.

Microsoft was the biggest investor in Open AI who made chat GPT They invested some 10 billion dollar in the company and chat GPT users have to use Microsoft software as Zur cloud services aside from other coming products Microsoft's business AI Assistant Office 365 co-pilot just came out recently and has been a whopping whooping success. Now let's talk the technicals on the chart. So you open up the chart and this isn't an Italian restaurant. So I apologize for so much spaghetti on the chart.

but you add the Ballinger bands to the chart and you get a pretty clear reading that momentum continues to breed during consolidation and downward. Direction You're swerving back and forth to the lower bsection of the Bands but during a momentum cycle, you're Brewing momentum in the upper bsection and continuously testing said momentum by breaking above the highest bands And that is what is happening right now. Right now, we continue to brew momentum. That is what the chart is saying.

Now that said, I know a lot of people like to short at all-time Highs but that is a big, big, big mistake. Why? Because you're going to have to incr losses for many, many months or quarters before those become profitable. Right now is not the time to short. Right now is the time to ride momentum and then lock in profits when that momentum breaks.

Similar to how buying a dip that just keeps dipping is not the fastest strategy in a bare. Market Well, well sell. Selling a rip that just keeps ripping isn't the best way either. Right now is not the time to short.

Right now is the time to ride uptrends and then pull out when you get the reversion, which right now is nowhere in sight. so plays on the momentum here. well. I say calls expiring next month.

You can today get 40 strike calls, which are just slightly out of the money for the mid $8 region. Why would you buy calls instead of shares? Well, well, each share cost about 400 bucks. If you have a small account, you're not going to be able to buy many shares, but with options, you can buy the right to own each of those shares for about $8.50 is and then trade the options themselves without ever having to actually shell out all the dough to own the actual shares. Of course, there's a lot more to it than that, and there's different strategies that you need to know in order to manage risk with those, because you can really blow up your account fast if you don't know what you're doing.

and that's why we have a whole course which by the way, cough, cough 50% off with coupon code. hello 2024 expires at the end of the month. Zip Trader Options is there smiling and waiting for you. But the benefit of buying slightly out of- the money calls expiring next month instead of in the money calls expiring 2 or 3 months from now is that they are simply much cheaper.

Be careful around earnings though, again, that's coming next week on the 30th. People tend to buy options contracts a lot right before earnings, causing the prices of the contracts to go up and then all of a sudden you get a massive dump afterwards in terms of pricing because again, options of course aren't just tracking the underlying stock price, but but they also change in value based on who is buying and selling the contracts. They're their own individual security which is great if you know how to play off that. Not so good if if you don't.

Definitely worth learning though in 2024, which is why we just launched that course. It's a very, very important skill to have options trading. Okay, now another stock that you may not have been following is a former Fang stock that didn't make it to the Magnificent 7, but has been barreling along fairly aggressively. Mr Netflix The Flicks of net Netflix Dumped super aggressively after hitting all-time highs November 15th 2021 Why increased competition struggles to attract new customers Co Stay-at-home Trend reversion All of that played into the massive dumpy dumpo, but today Mr Netflix experienced a more than 10% surge in its shares.

Following the announcement of super impressive subscriber growth and surpassing of Revenue expectations. the platform added some 13.1 million subscribers for surpassing industry projections. In fact, they beat expectations on subscriber growth by 4 million members. Now you pull up the top streaming services by subscribers in 2024 today.

Well, just a quick look and you see Netflix still at the top with 260 million Subs Amazon Prime closest competitor at 200 million Subs Although I'd argue this is not the same sort of thing because with Amazon Prime I mean all of regular Amazon Prime members are also Amazon Prime video members. So that's not really the same thing as having a loyal customer to one segment with Netflix If you're a Netflix subscriber, you're there for the content. with Amazon Prime you might be there to order some toilet paper rolls once a week. Disney In theory should be the biggest threat to Netflix but I mean they're more family oriented kid oriented so they're not going to be able to take all the markets and quite frankly, even in the kid oriented content.

I'm a little bit worried about Disney because they've gotten very, very political which is going to isolate like half half of their viewer BAS face. If you're a parent and don't want your kids to have Disney's political, views, well, you're not going to have them watching Disney movies. And that's not just me saying that. I Mean Axios ran a pull of Disney's reputation from 2014 to 2023 and it's been straight down and this has all been a massive benefit to to Netflix And right now Netflix stocks is on a huge momentum Trend breaking higher and higher with the rest of the big tech companies.

Is there a play on this? Well, yes, it's Loosely Followed the red directional SMA line since breaking over it originally in October of 2022. Right now, we are the farthest ahead of that line that we've gotten. Meaning, directional strength is the froest it's been now. It is indeed pretty common that you get a big spike on an earning surprise and then market sell it off over the coming days and you get a reversion back to the mean.

However, I'd argue post that reversion, you're going to see it go back up again and it's going to continue that momentum Trend to its all-time highs, which quite frankly would just mean joining the rest of the big tech stocks at all-time highs. Maybe the rest of the week you see a sell off for Netflix and then next week it starts retaking its uptrend and that is why you want to make sure that this is a top your radar as soon as possible. Now Finally, we've had some folks asking for my thoughts on the pay of Pal PayPal Pypl. The idea is that because she's discounted so massively from Highs at 310 that she must be a good deal.

But you got to remember folks, just because something is down doesn't mean it's a good deal. I Don't see any indication of the chart that shows any technical momentum brewing in the present. Maybe a little pansy momentum right here, but basically nothing for me. You could have the best company in the world, but if its charts not showing any momentum, well, where is the motivation to buy right now? For me, something only deserves a buy if its chart suggests it's a buy.

Its fundamentals suggest that it's just such an insane deal that even though there's no momentum on the chart, it's still a buy or or it smells good. But seriously, what about the business here? Well, I ran a poll on X and a lot of you guys said you think she is a good deal and in many ways PayPal is indeed a good deal. From a fundamental standpoint, they have some 400 million active user accounts and 35 million active Merchant accounts. They process some trillion dollars a year in annual payment volume, and she's certainly a payment leader.

I Use PayPal many of you use PayPal so on and so forth. Very, very well-known household name. but I do struggle a lot with the growth prospects of this and I think markets do as well, which is why you've seen it go straight down even though broader markets have gone up. Paypal just has so much increasing competition everybody and their mother is getting into.

Payment Processing You got some of the Ogs like Stripes Square we pay, but you also got the big Tech players like your Apple pay your Google Play your Samsung play. In my view, they're simply just going to have to keep spending more and more money to fight for a more and more competitive customer pool. Their revenue and free cash flow have plunged more than others. But in terms of redemp, could there be something? Well, I have an open mind.

The CEO says that he has news that will Shock the World coming on the 25th which is tomorrow. So again, I'll keep an open mind to this. You should too. Maybe he has some revolutionary AI idea that could bring in some hyping back to the stock.

But unless that happens, I need to see more proof. Something different, something more concrete to be excited about. PayPal Is it undervalued based on its market share in business today? Probably. But Is it going to go on a massive massive boom? Trend Well, you need something else to make that happen.

Not just it being undervalued technically because people are scared of the growth prospects. That's just what it is. they got a new CEO Maybe he can turn things around. We'll see right now.

I'm not super excited about it I Put it at maybe a neutral. Anyways, folks, what are your favorite stocks? let us know down below. If you want to watch our top five stocks for crazy growth in 2024 while we just posted that video a couple days ago, make sure to check that out on the channel Anyways, have a good one folks and we'll see you in the next video.