Investors beat a hasty retreat from mega-cap stocks and “Mag Seven” yesterday, resulting in more advancers than decliners on the New York Stock Exchange (NYSE), but significantly more decliners than advancers on the NASDAQ Composite.

The NASDAQ is still in a strong uptrend of higher highs and higher lows.

They’re coming for Palantir Technologies (PLTR), and yesterday, the stock filled a sizable gap and held above the 50-day moving average.

When Growth Stumbles

When all three growth sectors finish in the red, the market is going to finish in the red 99 times out of 100. In this case, the 1.75% drubbing in Technology (XLK) could have sunk the entire market by itself.

The eclectic leaderboard didn’t tell us much about the broad market.

Value, revenue, and low volatility moved higher across all sizes, reflecting a flight to safety and presumably a calmer market.

Deep Value

Over the past three years, the Street has championed a move into the S&P 500 Equal Weight (RSP), sensing that mega cap growth was overbought. But the latter kept growing, and the former kept falling behind. Now, the S&P 500 equal weight is so far behind market cap weight that it seems like a slam dunk to buy. Yet, large-caps are still cheaper in many ways.

Fed Governor Waller speaks before the Fed minutes are released. This is important since Waller has moved into the lead for the potential next Fed Chairman.

Today’s Session

All eyes are on technology stocks and to a lesser degree, retailers. This is not the end of A.I., but the beginning; however, there will be fits and false starts, ups and downs, and lots of individual failure along the way - welcome to the revolution.

As for the NYTimes story:

"Mr. Zuckerberg, 41, is sparing no expense and is willing to upend his company to stay relevant in A.I."

Zuckerberg is cutting back on incompetence.

Now, it is the time to let others panic, be ready to swoop in.

Tweet

 

Home | Products & Services | Education | In The Media | Help | About Us | Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.