Craig Johnson, the Chief Market Technician at Piper Sandler, recently shared his expert market views in an interview on CNBC. Among the topics discussed were Bitcoin’s recent breakout, sector performance trends, key individual stocks, and overall market sentiment. Johnson highlighted the bullish technical signal of Bitcoin’s breakout after months of consolidation, predicting a potential rise to $130,000 based on technical analysis. He emphasized the importance of trend analysis in making market predictions, relying heavily on charts to assess potential moves.
In terms of post-election trends, Johnson noted that historically, small and mid-cap stocks have outperformed the S&P 500 around 82% of the time between election day and year-end. He projected that this trend would continue through 2025, signaling a shift in market leadership towards these segments. Johnson also addressed NVIDIA’s muted stock reaction following its earnings report, attributing this to high expectations already priced into the stock. Despite this, Piper Sandler’s top semiconductor analyst has raised projections for NVIDIA, seeing any short-term pullbacks as potential buying opportunities.
Further discussing individual stocks, Johnson pointed to ongoing pressures on Target’s stock, noting that the company’s shares have entered a price gap that could drive the stock lower to around $113. He highlighted that gaps like these tend to close, indicating further downside risk for Target. When discussing market sentiment, Johnson observed that enthusiasm remains focused on high-flying stocks, but emphasized that only two of the “Magnificent Seven” mega-cap stocks, NVIDIA and Meta, rank among the top 50 performers over the past two years. He pointed out that stocks in industrial sectors have delivered stronger returns despite lesser attention.
As of the time of writing, Bitcoin was trading at around $97,237, up 2.6% in the past 24-hour period. Johnson’s analysis provides valuable insights into the current state of the market, highlighting key trends and potential opportunities for investors. By leveraging technical analysis and historical data, Johnson offers a unique perspective on market dynamics and individual stock performance, guiding market participants in making informed decisions. As the market continues to evolve, Johnson’s expertise and analysis serve as a valuable resource for navigating the complexities of the financial landscape.
