First, don’t forget to join me at 10 a.m. ET each Thursday for “Opening Playbook”!
I’m already cooking up at least three trade ideas for everyone in attendance, so don’t be late!
The Nasdaq is looking good Wednesday, rising over 1% in the first hour of trading, as excitement around AI demand outweighed new tariff threats from President Donald Trump.
The S&P 500 and Dow were also up nicely during the first hour of trading.
But tech stocks are taking the spotlight, with Netflix (NFLX) leading the charge. The streaming giant is up over 13% after reporting record subscriber growth and smashing earnings expectations, also announcing a $15 billion stock buyback while raising its 2025 guidance.
Oracle (ORCL) is also seeing significant gains, up over 6% on optimism tied to its involvement in the “Stargate” AI initiative — a cornerstone of Trump’s new $500 billion private-sector AI investment plan.
The president’s policy overhaul is reshaping the market. His big push for the U.S. to dominate AI, combined with rollbacks of Biden-era safety regulations, has supercharged the Tech sector while creating optimism.
Nonetheless, the broader market remains cautious. Everyone is keeping a close eye on potential tariff hikes, which could disrupt the current rally.
ServiceNow (NOW) Surges as Enterprise IT Spending Fuels Growth
ServiceNow (NOW) has been a standout performer recently, and it’s one of my favorites.
The cloud-based enterprise software provider has benefited from huge demand for its workflow solutions, particularly from large companies. Over the past week, NOW has climbed over 8%, driven by optimism around its ability to capitalize on increased IT spending in 2025. Analysts also love ServiceNow’s strong recurring revenue model and growing customer base.
At the same time, our Newton Indicator just flashed a buy signal, flipping from yellow to green:
Apple (AAPL) Stumbles Amid Weak iPhone Demand and Global Challenges
On the bearish side, Apple (AAPL) has faced a rough patch. Everyone’s favorite Technology giant has seen shares dip nearly 5% over the past week, weighed down by concerns over slowing iPhone sales and challenges overseas.
Recent reports of weakening demand in China and increasing competition in the premium smartphone segment have only added to the bearishness.
As I’ve said, AAPL is not one of my favorites right now, and the Newton Indicator is deep in the red.
For investors, this might be a good time to:
- Consider Shorts: For those who think the softness will continue, a short position could be the way to go. Just keep an eye out for the indicator to switch back to yellow or green.
- Wait for a New Green Signal to Start a New Position.
Finally, with AI and tech showing strength, the big question is whether this bullish momentum can outlast the uncertainty swirling around trade and regulatory shifts.
But for now, the market is clearly focusing on growth opportunities in innovation-driven sectors like Technology.
Let’s see if the optimism sticks as the week unfolds.
Graham Lindman
Graham Lindman Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. The Earnings Season Shortcut…
During earnings season, you need to be extra precise with your trading…
And this NEW way to buy and sell stocks could be the answer.
Take a look at this:
Those 117 lines of code are the heartbeat behind my Newton Indicator…
And over the next month-plus, I’ll be watching this tool like a hawk to find the best entries on trending earnings stocks.
NVDA? AMZN? TSLA?
Newton covers it all…
