I am taking trading long rental positions in Google ($GOOGL) at $344.23, Amazon ($AMZN) at $235.22 and Microsoft ($MSFT) at $368.15.
It’s a contrary sentiment trade — with investors now jettisoning the sector — also with a short half-life.
Position: Long GOOGL (VS), AMZN (VS), MSFT (VS)
This is the opening salvo in their relationship, but Broadcom has other irons in the AI infrastructure fire.
Breadth mixed (but sector divergences are wild), trading inconsistent and swinging wildly intraday:
* Despite the evisceration of tech yesterday, there are few tech stocks higher on the day — Google ($GOOGL) (DJIA inclusion), Amazon ($AMZN), Apple ($AAPL)
League leading hitter, Nvidia ($NVDA), has cracked to the downside some fractal support
* Hard reversal lower in financial stocks
* Carnage in the oil patch ($OIH -$13) with oil -$2.65
* Consumer staples are the world’s fair ($KO, $PEP, $PG and $KMB)
* Private equity shares are breaking down (after more redemptions and gates)
* Bitcoin breaks $60k to the downside (remember this was one of the possible catalysts I mentioned to a disrupted market filled with leveraged players)
* Speculative faves $PLTR (don’t investors ever learn?) and $HOOD are breaking down
Position: Long KO (S), PEP (S), PG (S), KMB (S)
Facebook and Google are positioned to profit amid the larger shift to digital advertising.
FedEx and Cerebras underscore margin concerns, oil falls further, Google to join the Dow, and other headlines are moving stocks this morning.
Let’s get real about South Korea’s wild market swings, a new ADR listing, oil’s decline, the DJIA, and what I’m seeing from the S&P 500.
Here are the three things that triggered the selling, what to watch now and my strategy for this difficult market.
The sort of abysmal price action in $MSFT, $AMZN, $GOOGL and $META are EXACTLY the concerns I expressed in my market structure post.
I worry that today’s weakness in the precursor of a market structure event not similar to past disruptions:
The proliferation, popularity and acceptance of leverage products and portfolio concentration in quantitative strategies, margin debt, the options market and leveraged ETFs argue in favor of rising odds of another October 1987 (“Black Monday”) or a 2018 “Volmageddon” (or Vix Bloodbath) event.
Position: None
Stock picking is working as the indexes struggle.
Coke and the IRS, Google flexes its balance sheet, and other headlines are moving stocks this morning.
