No Value In The Mega Caps
Mega caps – especially the Mag 7 – have driven the market indexes of late but it’s hard to justify further price increases because the stocks are more than fully valued at this stage. That’s not to say the market…
CAVA: Exhaustion Candle
I first wrote about up and coming Mediterranean fast-casual chain CAVA six months ago in “Legendary Days: Adventures In San Diego” (May 16, 2024). I had read about it a Barron’s article about the “next Chipotle”. But since there weren’t…
*UPDATED WITH MSFT and META RESULTS* Mag 7 Fundamentals Are Stellar – But Valuations Are Stretched
In analyzing the markets we must always keep in mind that the Mag 7 make up approximately 30% of the market capitalization of the S&P 500. As a result, so go the Mag 7, so goes the major market indexes….
The Fed’s Tough Decision, ORCL & KR Earnings Preview, The Antitrust Case On The KR-ACI Merger
Technicals: The S&P closed last week at 5,408 – just above 5,400 which is an important level because the S&P has spent so little time below it in the last three months. In other words, below that level almost everyone…
Big Down Day Kicks Off September, ZS Earnings, Jobs Report Friday, Europeanization Of America
The stock market got smashed to open September after the long Labor Day weekend. The S&P was -2.12% and the NASDAQ -3.26%. Nvidia (NVDA) led the way, dropping almost 10% as news that the DOJ is investigating it for antitrust…
Thursday’s Big Reversal, A Preview Of Powell’s Jackson Hole Speech
After a furious bounce back rally the previous thirteen sessions, the market opened higher on Thursday but reversed hard to the downside creating “bearish engulfing candles” all over. This is bearish in the short term and it’s no surprise that…
Welcome To October 1929: The Implosion Of The Greatest Bubble Of All Time
For the first time in what seems like forever, the market corrected over the last 7 trading sessions. The leading Nasdaq-100 (QQQ) – dominated by The Magnificent 7 – lost 5.5% over that time period. At first it looked like…
The Market Since Thursday: Rotation Or Exhaustion; NFLX Is The First 2Q Earnings Test
Since Thursday’s weaker than expected June CPI Report, the market has undergone quite the transformation. Megacap Tech – The Magnificent 7 – which have accounted for most of this bull market’s gains have taken a breather. On the other hand,…
The Global Economy Rests On 7 Stocks: Understanding The Two Tier Stock Market And The Two Tier Economy
The June CPI came in soft Thursday morning raising expectations of a Fed rate cut in September to about 85%. In an interesting reaction to the report, investors are selling the leading stocks in the Nasdaq-100 (QQQ) and rotating into…
NVDA Is Cracking…. The Rest Of The Market Will Follow Shortly
In his article in Saturday’s WSJ (“Nvidia’s Sucess Is The Stock Market’s Problem, Broadly” [SUBSCRIPTION REQUIRED]), James Mackintosh outlined the two things driving stocks: demand for AI chips and concern about the economy and interest rates. The former is pushing…