Financial News vs. Noise
Not sure what market’s would have been down without NVDA, but would have been worse. Yesterday’s weakness didn’t come out of the blue, it usually never does. I pointed out some issues in transports and housing stocks and have also talked about economically sensitive names.
Dow transportation stocks are ‘area of potential concern’ for stock-market bulls-MarketWatch
Yesterday we saw that bleed into everything else.
Mike O’Rourke had a prediction the other night about the Magnificent 7…
"With multiples in the same ballpark, don't be surprised tomorrow if the other Magnificent Seven names become sources of funds for investors favoring Nvidia's growth."
You saw this play out as the Magnificent 7 lost $170 billion in market cap, while NVDA gained $217 billion
Mike O’Rourke had another prescient observation about the other chip makers after NVDA earnings….
"Except for Broadcom, the other key AI chipmakers have already reported earnings and were generally underwhelming. It is hard to see how Nvidia crushing it this quarter (when they did not) is a positive for those competitors. Furthermore, knowing Nvidia has an even more highly anticipated chip coming on the horizon means the challenge for the competitors is getting harder."
You may have seen this play out yesterday as well.
SPY has had quite a run since the April dip, will be looking to see if it can find support at either the 10 day or 20 day.
Same deal on the QQQs
The Dow looks like a double top short sale, no coincidence it’s doesn’t own NVDA. It’s not really relevant but it does tend to give you a sense of what’s going on outside of the Magnificent 7 and AI.
Small caps look the same…
I know I’m a broken record on the regional banks, but that was an ugly candle yesterday.
10 year rates are working on a nice undercut and rally at the 50 day. I mentioned yesterday that stock traders seem content with 0-1 cuts this year as long as there were no raises. If the bond guys aren’t then that bleeds into stocks.
For now I still think you buy the dips, but if rates continue to move up then all bets are off.
Most interesting area to me at the moment is the Magnificent 7. I bought AAPL, TSLA, and GOOGL yesterday and will be looking to possibly add to AAPL and GOOGL. I added a lot to gold miners yesterday, so far this morning that’s looking pretty good.
Yesterday the SEC gave the go ahead for Ether ETFs. I think that the spot Bitcoin ETF as a game changer for Bitcoin, this will be a game changer for Ether. SEC Widens Accessibility of Crypto Investing With Approval of ETFs for Ether-WSJ
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