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Stocks rebound after tech sell-off
After days of a tech sell-off, markets in New York and Toronto rebounded onThursday 1.5% to 1.85%. In Toronto, nearly all sectors were in the green with materials and discretionary leading the charge, while real estate dipped modestly. Helping the TSX was gold, which jumped US$100 to US$4,170, and silver which rallied 5.25% to US$66.60, though WTO sank 2.5% to US$87.80 as war raged between the U.S., Israel and Iran. Major movers on Bay Street included Dollarama which reported a beat and soared 9.02%, Energy Fuels 10.48%, BlackBerry 5.19%, B2Gold 5.72%, and TransAlta 8.22%.
In New York, tech led the way after suffering the worst losses in recent days. Key names including Super Micro Computer up 9.29%, Intel 9.22%, Micron 11.65%, and Sandisk 14.6%, though Oracle tumbled 8.56%. Meanwhile, the U.S. 10-year yield edged down to 4.4453% while Bitcoin regained 2.8% to US$63,500.
🛒 Dollarama Inc. (DOL.TO) +9.02%
🛢 Energy Fuels Inc. (EFR.TO) +10.48%
📱 BlackBerry (BB.TO) +5.19%
🥇 B2Gold Corp. (BTO.TO) +5.72%
💡 Transalta Corp (TA.TO) +8.22%
💾 Super Micro Computer (SMCI) +9.29%
💾 Intel (INTC) +9.22%
💾 Micron Technology (MU) +11.65%
💾 Sandisk Corp (SNDK) +14.6%
💻 Oracle (ORCL) -8.56%
🅱 Bitcoin (BTCUSD) (BTC-USD) +2.8%
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It's a bit of a K-shaped economy. Accumulated inflation over the years has had an impact on the consumer. The consumer discretionary sector is relatively weak compared to others such as technology (which involves more enterprise spending). If you're invested in the consumer discretionary space, be careful.
S&P: Resistance is 7650 and support at 6250, a huge difference. Bulls need it to hold above 7250, old resistance that the S&P broke last month, or else it falls to support. The RSI has now made a massive bearish turn down, which happened when the S&P recently made a new high--this shouldn't happen. Bad. Nasdaq 100: the RSI shows a double topping patterns and overbought. This happened when tech peaked in late 2021, leading to a 30% pullback. Garner expects the Nasdaq to be 50% lower than today's level. 50. This moment recalls the eve of the 2008 recession when the economy was strong, but fell apart in mere month. Signals point to the market cooling off after months of mania. He has raised his cash position to the highest level in years.
Tech extends slide
Tech continued to tumble to extend Tuesday’s sell off. The S&P closed -1.61%, the Nasdaq -1.98% and the Dow -1.87%. Key names: Super Micro Computer -27.98%, Nvidia -3.73%, Micron -4.7% and Amazon -2.53%. While the U.S 10-year yield held at 4.548%, Bitcoin slipped 0.5% to US$61,790.
The TSX declined 0.7% as sectors were mixed. Energy rallied after WTI jumped 2.5% to US$90.40, but silver slid nearly 3% to US$63.90 and gold fell 4.5% to US$4,070. Sectors were mixed. Materials and healthcare fared the worst. Key names: Constellation Software 5.66%, CNQ 1.94%, Telus -2.98%, Cenovus 2.75% and Barrick -4.97%.
💾 Super Micro Computer (SMCI) -27.98%
💾 NVIDIA Corporation (NVDA) -3.73%
💾 Micron Technology (MU) -4.7%
📦 Amazon.com, Inc. (AMZN) -2.53%
🅱 Bitcoin (BTCUSD) (BTC-USD) -0.5%
💾 Constellation Software Inc. (CSU.TO) +5.66%
🛢 Canadian Natural Rsrcs (CNQ.TO) +1.94%
📱 Telus Corp (T.TO) -2.98%
🛢 Cenovus Energy (CVE.TO) +2.75%
⛏ Barrick Mining (ABX.TO) -4.97%
Classic climb the wall of worry, and then take the elevator down. It'll probably last a little bit longer. We'll see what happens on Friday with SpaceX. There are so many moving parts and there's so much uncertainty out there, people are rebalancing. Doesn't think the drawdown will have legs.
He has about a 52% hedge across most portfolios, and built up some cash to ~15%. When the rubber hits the road is when they take off that hedge.
Yesterday saw a pretty dramatic fall, as the futures got down to 28,200. It's sitting right now around 28,600. That 28,200 will be really important to find support. If it goes through there, we're probably going down close to another 1,000 points. The market's always right, so you have to respect it and pay attention. It never plays out the way you think.
Weekly 52-Week Low (or 52-Week High): MU-Q, LNR-T, ILLM-T, IMP-T and More 52-Week Highs and Lows (Jun 03-09)
52-Week High TSX Stocks Here’s this week’s 52-week high stocks on Stockchase… 💻 Technology ⚡ Energy 🛍 Consumer 🚚 Industrials 💡 Utilities 🏛 Financials 🛢Basic Materials 👨⚕️ Healthcare 52-Week Lows TSX Stocks Here’s this week’s 52-week lows stocks on Stockchase…… read more
Tech slides in rotation
As if resuming Friday’s session, markets sold off tech names on Tuesday though much of the market was positive, suggesting a rotation. The Nasdaq closed -0.97%, but was well off the lows of the session. The S&P declined 0.26%, and the Dow added 0.17%. Major moves came from Apple, which fell 3.64% a day after unveiling its new Siri AI, Tesla tumbled 3%, Super Micro Computer slid 7.62%, Coherent cratered by 11.44%, though J M Smucker rallied 10.44%. The U.S. 10-year yield slipped by 4.518% while Bitcoin lost 2.3% to U$62,020.
In Toronto, the TSX gave back 0.19% as staples and real estate led seven sectors higher. Energy suffered major losses as did materials. Key names: CNQ -3.53%, Whitecap Resources -3.35%, Killam Apartment REIT 3.22% and Gildan 3.86%. Silver sank 4.2% to US$65.20, gold declined by US$70 to U$4,258 and WTI crude slid over 3% to US$88.50 after Trump announced that the war with Iran would end soon, but then vowed to retaliate against a strike by Iran.
🍎 Apple Inc (AAPL) -3.64%
🚗 Tesla Inc (TSLA) -3%
💾 Super Micro Computer (SMCI) -7.62%
🧬 Coherent, Inc. (COHR) -11.44%
🍭 J. M. Smuckers Co. (SJM) +10.44%
🅱 Bitcoin (BTCUSD) (BTC-USD) -2.3%
🛢 Canadian Natural Rsrcs (CNQ.TO) -3.53%
🛢 Whitecap Resources (WCP.TO) -3.35%
🏛 Killam Properties Inc (KMP.UN.TO) +3.22%
👕 Gildan Activewear Inc. (GIL.TO) +3.86%
It's risky to bet on derivatives of growth of other industries. If you think the AI boom will continue, it doesn't mean you need to invest in copper and power, because you may not got a pure play on that theme. Copper is used for many other products which could go bad or if there's a recession. Demand has been pulled forward for years, so the valuation is pricing in all the good news.