[Accurate Prediction] Profit-taking in Highly Concentrated Sectors. Expecting Next few weeks to test stability and support.
$NASDAQ (NASDAQ.US)$ $S&P 500 Index (.SPX.US)$ As we have predicted here earlier: High Concentration Risk: Why this stack of cards will fall really hard?
Now we expect the next few weeks will be the real test for volatilty and stability: Investors Disorientation: Will it stabilizes? Investors will be more selective in the weeks ahead.
Now we expect the next few weeks will be the real test for volatilty and stability: Investors Disorientation: Will it stabilizes? Investors will be more selective in the weeks ahead.
Gold and Silver: $Gold Futures (APR6) (GCmain.US)$ $Silver Futures (MAY6) (SImain.US)$ Both Gold and Silver don’t see big movement as traders are not in a rush to rush in.
Rare-Earth: So far for some, it is flat $NioCorp Developments (NB.US)$ $MP Materials (MP.US)$ But for some, liquidity is not flowing in $USA Rare Earth (USAR.US)$ $Energy Fuels (UUUU.US)$ $Critical Metals (CRML.US)$ So it is not exactly a recovery in rare-earth stocks but all of them still have high YTD gains.
Memory/Storage/Equipment: Profit-taking continues here $Seagate Technology (STX.US)$ $SanDisk (SNDK.US)$ $Western Digital (WDC.US)$ while some stabilizes $Micron Technology (MU.US)$ $ASML Holding (ASML.US)$ $Lam Research (LRCX.US)$ Even with the profit-taking, Sandisk, Western Digital and Seagate still have very high YTD gains. At this point, it is a healthy profit-taking cycle and could still see more profit-taking underway.
Crypto: $Bitcoin (BTC.CC)$ $Ethereum (ETH.CC)$ seems to slowly stabilize but it is still to early to determine that. $Strategy (MSTR.US)$ $Coinbase (COIN.US)$ $Bitmine Immersion Technologies (BMNR.US)$ Traders are not rushing back in, and it will take some time to determine the next support.
Mag7: The increased Capex for Mag6 also aren’t seeing traders rushing back in to $Alphabet-C (GOOG.US)$ $Microsoft (MSFT.US)$ $Meta Platforms (META.US)$ $Amazon (AMZN.US)$ It is quite possible to see side-way movements in them until investors get more clarity on potential returns from these high capex in the next quarter earnings.
Software Mistakes: As we have highlighted the importance to stick to fundamentals, we can see one of our recommendations $Datadog (DDOG.US)$ doing well during this earnings. $Spotify Technology (SPOT.US)$ also saw a strong bounceback. There are still a bunch of software stocks that are cheap and have strong fundamentals. Here we talk about why the software rout has little truths to it ([Baseless Speculations] Software will be disrupted by AI)
Rare-Earth: So far for some, it is flat $NioCorp Developments (NB.US)$ $MP Materials (MP.US)$ But for some, liquidity is not flowing in $USA Rare Earth (USAR.US)$ $Energy Fuels (UUUU.US)$ $Critical Metals (CRML.US)$ So it is not exactly a recovery in rare-earth stocks but all of them still have high YTD gains.
Memory/Storage/Equipment: Profit-taking continues here $Seagate Technology (STX.US)$ $SanDisk (SNDK.US)$ $Western Digital (WDC.US)$ while some stabilizes $Micron Technology (MU.US)$ $ASML Holding (ASML.US)$ $Lam Research (LRCX.US)$ Even with the profit-taking, Sandisk, Western Digital and Seagate still have very high YTD gains. At this point, it is a healthy profit-taking cycle and could still see more profit-taking underway.
Crypto: $Bitcoin (BTC.CC)$ $Ethereum (ETH.CC)$ seems to slowly stabilize but it is still to early to determine that. $Strategy (MSTR.US)$ $Coinbase (COIN.US)$ $Bitmine Immersion Technologies (BMNR.US)$ Traders are not rushing back in, and it will take some time to determine the next support.
Mag7: The increased Capex for Mag6 also aren’t seeing traders rushing back in to $Alphabet-C (GOOG.US)$ $Microsoft (MSFT.US)$ $Meta Platforms (META.US)$ $Amazon (AMZN.US)$ It is quite possible to see side-way movements in them until investors get more clarity on potential returns from these high capex in the next quarter earnings.
Software Mistakes: As we have highlighted the importance to stick to fundamentals, we can see one of our recommendations $Datadog (DDOG.US)$ doing well during this earnings. $Spotify Technology (SPOT.US)$ also saw a strong bounceback. There are still a bunch of software stocks that are cheap and have strong fundamentals. Here we talk about why the software rout has little truths to it ([Baseless Speculations] Software will be disrupted by AI)
Semiconductor: This sector we can see the winners being the favorite with strong support and liquidity $NVIDIA (NVDA.US)$ $Broadcom (AVGO.US)$ $Advanced Micro Devices (AMD.US)$ $CoreWeave (CRWV.US)$ while $Intel (INTC.US)$ is moving sideways and $Quantum Computing (QUBT.US)$ lagging. Here we talk about how increased Capex will affect this sector (Irrational selling: Capex increased will eventually benefit one of them)
We have been emphasizing that semiconductor sector will still be defensive growth sector this year due to several uncertainties.
It is clear that the sentiments right now is still cautious entry, as traders are still avoiding the risky sectors. Not all but some cheap Software stocks with strong fundamentals, and key semiconductor names seem like the main area of focus at the moment while the market stabilizes.
It is clear that the sentiments right now is still cautious entry, as traders are still avoiding the risky sectors. Not all but some cheap Software stocks with strong fundamentals, and key semiconductor names seem like the main area of focus at the moment while the market stabilizes.
It is important to observe the other sectors' movement carefully these 2 weeks before rushing back in.
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