Market in No Rush to Buy Dips Ahead of Big Tech Earnings
The action quickly turned dreary as there has been no rush into stocks despite sharp pullbacks.
Chart of the Day: Setback for Alphabet
The stock was blitzed on Thursday with news about a delay in the Gemini AI tool.
Oil Climbs; AMD Takes Stage; Google, Other Big Earnings on Tap
Iran fighting rages on; Advanced Micro Devices showcases at AI event; GM, Alphabet, IBM, Tesla, Lockheed Martin and American Express among names reporting.
The Big Question as an Important Earnings Week Arrives
Tech leaders face a key test, but has the ‘equation’ been reset? Plus, two China headlines to know about and my game plan for the week.
We’re Tracking 23 Signals Across 10 Portfolio Investing Strategies
Let’s scan through the headlines for the stories of the week that speak to our Pro Portfolio holdings.
Weekly Roundup: Chip Rout Tests the Market, but Here’s How We Aim to Capitalize
We raised a few price targets, added to three holdings, and locked in big gains in another.
VIDEO: Our Game Plan for a Nervous Stock Market
Here are the key technical levels we’re watching and why Google’s earnings next week will be important.
New Netflix Price Target Amid Mobile-First Transition
Here’s what we’ll be watching to determine the position’s place in the Portfolio.
Our Arguments Are Starting to Play Out
This week we argued that:
* With everyone on the same side of the bullish boat (in a market dominated by passive products and strategies) and with an increasingly casino-like backdrop of momentum-based buying (as a template see “The CNBC Panelist Said What?” (specifically, the poster child Jim Lebenthal’s “FOMO” buy of Micron at $1,200 recently), including the proliferation and popularity of leveraged ETFs and 0DTE options) — equities remain vulnerable to a market structure event.
* At the very least, we anticipated a wild setting of dramatic rotation in sector form factors and that is what we have gotten in the last week. Stocks are moving in integers — in the sort of volatility market participants are not accustomed to.
* Specifically, we expected the heady swing back into hyperscalers was likely to reverse. (Google’s ($GOOGL) announcement of technical problems with Gemini served as a catalyst yesterday.)
* We thought a correction in hyperscalers coupled with a large correction in the over-hyped leadership in memory and semis could contribute to a substantial fall in the Nasdaq. This is what we have been seeing in the last three trading session.
* We warned that the IPO market’s heady activity would backfire on investors. Yesterday SpaceX ($SPCX) (one of our shorts) broke its IPO price. Standard Nuclear ($STDN) and Csquare ($CSQR) joined SpaceX by breaking below their IPO prices on Thursday.
Again, this is a great environment for dispassionate and opportunistic traders but a lousy setting for the buy-and-hold crowd.
Position: Long GOOGL (VS); Short SPCX (S)
Don’t Be Fooled. There’s Ugliness Hiding Under the Surface.
The indexes Thursday did not reflect the carnage in recent leaders and chip names and the ‘aroma of fear.’