July 21, 2022 | Daily JAM, Morning Briefing, Top 50 Stocks, Volatility |
In the last week Technology stocks, and chip stocks in particular, have staged a very impressive rally off of a really low base. Nvidia (NVDA), for example, is up 17.43% in the week that ended on July 21. That still leaves the stock down 39.43% for the year. Advanced Micro Devices (AMD) is up 15.36% in the last week. And it’s still down 37.85% for 2022. Qualcomm (QCOM) is up 1.85% for the week. And down 16.26% for the year. Impressive. But I’d be more inclined to see this as a sustainable rally if stocks were rising across the board–with tech and chips leading the way, perhaps.
Instead what I’m seeing is a rotation from safe and less risky stocks
December 4, 2021 | Daily JAM, Mid Term |
Expect the the debate to go on. Are we seeing a top for this extraordinary rally? Are stocks headed to their first correction since dinosaurs walked the earth? (Actually stocks had their last 10% correction in February 2020 but almost nobody remembers because it didn’t last very long and soon stocks were on their way to infinity and beyond.) And will this correction be led by technology stocks, the stars of the last rally? Or is the huge and very quick drop in technology stocks and the smaller but still significant fall in a wider index such as the Standard and Poor’s 500 merely a rotation from one sector into another? For the record, as of the close on Friday, December 3, the S&P 500 was down 3.47% from its November 24 high. The NASDAQ Composite, with its heavier weighting in technology, was down 6.05% from its November 11 high.
November 22, 2021 | AAPL, Daily JAM, Jubak Picks, Volatility |
It was sure hard to see a market melt up today, November 22. The Standard & Poor’s 500 was down 0.32% and the NASDAQ Composite fell 1.26%. Market leaders in the melt up rally like Applied Materials (AMAT) and Microsoft (MSFT) were down 1.65% and 0.96%, respectively. And it was even harder to see the trend I thought might be on its way in my Friday, November 19 post “Forward into the past with tech stocks:We’re seen this market before.” The rotation into tech stocks that I saw on Friday turned into loses of 3.12% for Nvidia (NVDA), and 1.92% for Alphabet (GOOG.)
But I suggest that you take a look at Apple’s (AAPL) performance today
March 24, 2021 | Daily JAM, Morning Briefing |
What looked like one of the rotation markets we’ve seen recently with selling of technology shares and buying of cyclicals and post-vaccine recovery stocks turned into a market-wide sell off by the close.
March 23, 2021 | Daily JAM, Morning Briefing |
This morning Federal Reserve Chair Jerome Powell gave reassuring inflation testimony before the House Financial Services Committee. Prices would rise this year as Americans are able to go out and spend post-pandemic, but while “We do expect that inflation will move up over the course of this year,” he said. “Our best view is that the effect on inflation will be neither particularly large nor persistent.” As you might expect on that view, the yield on the 10-year U.S. Treasury dropped 5 basis points to 1.64% as of 2 p.m. New York time on Tuesday, March 23. On most days recently a drop in Treasury yields like that would have produced a significant rally in stocks. But not today.
March 9, 2021 | Daily JAM, Morning Briefing |
Technology stocks, so pummeled yesterday, roared back today. The NASDAQ Composite gained 3.69% on the day. The NASDSQ 100 with its huge waiting to BIG TECH closed up 4.03%. After yesterday, a day when the recent rotation into value, cyclical, and vaccine recovery stocks resulted in a sell off in technology shares, today, March 9, those shares showed only muted if any gains, and tech stocks saw huge pickups.
March 8, 2021 | Daily JAM, Morning Briefing |
Two indexes will tell you what you need to know about today’s stock market action. The Dow Jones Industrial Average, driven by cyclicals, vaccine recovery, and consumer stocks rose to an intraday record high. After a slight retreat at the end of the session, the Dow finished ahead 0.97% on the day. The NASDAQ Composite, on the other hand, weighed down by technology and growth momentum stocks dropped 2.41% on the day to fall into a full correction from the February 12 closing high.
January 6, 2021 | Daily JAM, Short Term |
Of course, a sector can rally on new cash coming off the sidelines. Often, however, when one sector rallies another falls as investors use profits from that sector to fund new buys. That seems to be what happened today when “green” stocks rallied and technology shares fell.
November 25, 2020 | Daily JAM, Morning Briefing, Short Term |
The number of Americans filing initial claims for unemployment in regular state unemployment programs climbed by 30,000 in the week ended November 21, the Labor Department reported today, November 25. For the week initial claims in state programs rose to a seasonally adjusted 778,000. Economists surveyed by Reuters had expected 730,000 new claims for the week. This is the second straight week for an increase in new claims for unemployment and adds to other data showing the U.S. economy is slowing under the impact of a new surge in coronavirus infections and a rising number of restrictions on economic activity as states attempt to slow the spread of the virus.
November 11, 2020 | Daily JAM, Morning Briefing |
Yesterday, technology stocks that took it in the neck on Tuesday bounced back strongly. The Stand... To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with...
November 2, 2020 | Daily JAM, Morning Briefing |
To my way of thinking, investors and traders got ahead of themselves today. With election day still a day away, stocks in economically sensitive sectors moved up while stocks of the technology companies that have been able to show revenue growth even during the...
September 2, 2020 | Daily JAM, Morning Briefing, Short Term, You Might Have Missed |
At the close today, the Standard & Poor's 500 was up another 1.54%. Putting this question at the top of many investors' and traders' minds: Is there any way to participate in this blow out rally without real adding an unacceptable amount of risk? The 5.83% drop in...
