Weekly Update 49- Stocks up! Computer Systems on the radar!

  This week was a bullish week for stocks. Since August we have had only six red weeks. The new US leadership with Trump is believed to be positive for business and the stockmarket. Jobsnumbers came in better than expected and the ISM Manufacturing index rose to 48,4. Construction spending was 0,4, better than expected 0,1. This indicates a strong economy. We can also expect lower rates to help manage the debt levels and also higher inflation along with stronger production overall. That might be the solution to manage the high debt levels. 

AI is supposed to be the next major thing. The leading companies will need to engage the best people for this and the right technology companies to attach to and of course lots of energy sources. Today I bring in a chart of this interesting AI company, it is in a nice trend and it is still in the early stage:

BBAI

Daily chart

BBAI is in the Information Technology Services Subsector and the future of AI will depend on companies like this. How to adopt and implement AI into everyday business applications and everyday human life. The AI "revolution" needs substantial investements in Software, Energy, Data centers and Semiconductor Chips. When looking at this chart we can find a resistance level around 4.70 and a lower high trendline that is about to be broken to the upside. One can argue that this has gone to fast but when looking at longer term time frames I can find a solid build up phase over an extended period. This supports my thesis that BBAI will go much higher than this. It is a buy.

In the Technology Sector itself we have the AI-important Computer Systems Subsector, ix2370 and many of the companies here are part of the ETF for AI and Tech, ticker: ARTY.

This ETF consists of companies that are, to some extent, part of the AI development. 

Zooming in to the Computer Systems Subsector, we find RGTI, CAN and QBTS. This subsector is moving again after a correction in August/September. QBTS for example is a leader in quantum computing for business. They have going up a lot the last few weeks so it is probably time for some cooling off. But long trends support further gains.

QBTS

Weekly chart

In Premium you can see my extended analyze, it will also appear in Market Pendulum. I will trickle it down to see what implications this AI revolution will have on the need for computer systems and I will also present the absolutely best stocks in GOLD MINING right now! This is the time to start positions in Gold stocks and of course a subscription for TSC Premium.

The Sectors:

This week the Healthcare Sector improved and the Energy Sector went negative. The Healthcare Sector still need a couple of weeks to be positive in all timeframes. The Energy Sector did go down five straight days this week. The demand for oil is slowing. The long time strong Utilities Sector was also down this week. This Sector should continue to be strong going forward since it is well connected with uranium and natural gas. The demand for energy from the Technology Sector is very high. The Industrials Sector did go down a bit this week but is still positive.

The Consumer Cyclical Sector and Communication Services Sector is the strongest right now, together with the Technology Sector. Also positive in all timeframes are the Financial Services Sector although it lost a bit of momentum this week. The Real Estate Sector looked as if it was about to improve last week but went down again to a neutral level. Lastly we have the Consumer Defensive Sector that is overall positive and in a nice trend.

Best Regards,

Trader Sven