Setting New Price Targets for Nvidia, S&P 500, Nasdaq Composite
Nvidia, the S&P 500, and the Nasdaq Composite are breaking out in unison.
Oil & Treasuries Up, Fed Minutes Ahead: 8 Items Shaping the Market Wednesday
Let’s check key items to watch today, including Marvell’s Investor Day reaction and SpaceX looking for Nvidia cash.
How Much Longer Can the AI Leaders Last as a Defensive Trade?
Interest rates aren’t hurting AI, and that has made the group a safe haven despite inflation concerns.
Market Musings
* I continue to be short in a bull market…
Once again, I thought underneath the hood there was less than meet’s the eye.
Though the averages showed a robust gain, Nasdaq breadth was negative:
And, Nvidia ($NVDA), which was +$5 per share on the day at its high, basically closed flat.
Treasuries were modestly higher but it looked more like a dead-cat bounce than a reversal to lower yields. This morning $TLT is -$0.40, so Tuesday’s slightly lower bond yields have been reversed.
“Forward thinking” financials continued to show no spark.
Finally, despite the record high in the indices, there were twice as many lows as highs on the NYSE:
We moved from small to medium-sized short the indices on yesterday’s market advance.
Position: Short SPY (M), QQQ (M)
Continued Broadening Lifts S&P 500 to First Record Since August
The S&P notched its first record close since August on a continued broadening as Treasury yields remained subdued. The Nasdaq added a second straight record, but small-caps gave up an early gain.
The S&P 2 Index
A little known fact…
Micron ($MU) and Nvidia ($NVDA) alone will deliver more than 30% of the Q3 S&P EPS growth as the median stock barely grows.
Position: Short NVDA (VS), SPY (M)
AMD’s ‘Very High’ Chip Demand Sets Up Marvell’s Investor Day: 8 Key Items Shaping the Stock Market Tuesday
Zscaler reiterates guidance, Boeing’s Lockheed Martin win, and other headlines moving the market this morning.
Things I Did Yesterday
Here are Monday’s “things:”
* I reshorted the indices: $SPY at $771.82 and $QQQ at $752.71.
* I added to cannabis longs — $MSOS at $4.41, $GTBIF at $6.29 and $GLAS at $5.28.
* I reshorted $NVDA at $237.12. I took a small trading loss on much of this short at $237.49.
* I reshorted $GRNY at $28.46.
Position: Long MSOS common (VL) and calls (S), GTBIF (S), and GLAS (S); Short GRNY (S), NVDA (VS)
Stocks Shrug Off New Highs in Yields as the Advance Broadens
The Nasdaq closed at a record, and the S&P 500 came within a whisker, as the rally broadened for a second straight session, even as 10 and 30-year yields climbed to their highest close since 2002.
Chart of the Day: AMD Proves Its Worth
Another solid breakout on big volume has this semiconductor stock poised for a bigger move.