November 16, 2026
Preview from my weekly report*
“Buy
the dip” suggests underlying resilience of demand for stocks.
Traders demonstrated a willingness to buy
the dip last week, suggesting underlying resilience of demand for
stocks. Jensen Huang, the “rock-star” founder of the world’s dominant AI chip
maker, Nvidia, resigned under pressure on Wednesday night. NVDA stock opened
down 13% on Thursday morning. Traders who bought on the bad news at the open
made a 10% profit by the close. Trading volume for NVDA was the most active in
22 months. Although NVDA still was lower for the full week, the technology-heavy
ETFs that hold a lot of NVDA (such as XLK and QQQ) ended the week with gains.
The
benchmark S&P 500 is now down only 3% from its all-time high on 10/6/2026, while
the technology-heavy Nasdaq 100 index is down nearly 10%. So far, both of these
declines qualify as normal corrections, despite consensus of traders fears of further
erosion of stock prices.
The
benchmark S&P 500 stock price index rose to a new all-time high just 27
trading days ago on 10/6/2026. Since then, pessimism replaced optimism,
and bearish, risk-off sentiment became the new mood of the stock market, which is bullish according to The
Art of Contrary Opinion.
The underlying major trend of technological
progress will continue to support strong earnings growth, despite temporary
setbacks. We believe it is highly likely that our highest-ranked, strong-growth
stocks will resume their major uptrends before long. Bearish sentiment simply offers
opportunity to accumulate growth stocks at bargain prices.
Our
Colby INNOVATION Portfolio is Up +34.85% net of fees this year through October
30, 2026. That is more than 3X the performance of the NASDAQ Composite (9.96%)
and nearly 3X the performance of the S&P 500® (11.77%). We believe that the demand for innovative technology will
exceed supply
for years to come. The most dynamic INNOVATION stocks appear well-positioned
to continue their bullish major trends.
All of our clients have made positive returns over the past 15 years while taking substantially less risk. We offer complete transparency, anytime access to your funds, and low fees. Your assets are secure, insured, and you keep control over your money. For details email info@colbyassetmanagement.com or call 646-652-6879.
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