I agree, once the Fed moved on from the inflation is "transitory" statements, they have been clearly telegraphing their moves of rates going higher. However, I'm still seeing mixed signals.
And the expectation is bad news is good news and vice versa, ie a good job reports means the fed will have to continue to be hawkish for longer.
Mentioned back in May 115-135 area give or take could be a level of support for NVDA. We're in that range now. I tend to think it will go towards the lower end of it.
The Techs that still have high PE such as NVDA and ADBE are getting hit hard. Some like GOOG may have hit their lows but there still some that still have high PE. This also applies to S&P stocks with multiples higher than 30 PE.
Oppenheimer tech analyst more in line with my target with him mentioning 3800. Near term trading is bearish and the question is is this the middle innings of a year long bear market or a final flush before an opportunity. Seasonal trends not favorable though.
markets.businessinsider.com
I’m in the red on MU but glad I didn’t buy NVDA. That hype machine was destined to fall based on gaming and crypto. ARKK continues to get smashed. May not be too late to buy SARK because I think TSLA could be next to fall with power grid nonsense, more cautious consumer, and continued SC issues.
I like the trade, as I think the selling is overdone.
Remote working has helped reduce the demand for gasoline. The timing was definitely right for the work from home revolution…a pandemic which led to high gas prices as lockdowns ended and the fact that tech infrastructure is now mature enough to make it a feasible widespread option.I was listening to a Harvard prof who says inflation seems like its easing just from looking at some price, but the price decline is actually due to "demand destruction."
Months of escalating fuel costs have caused consumers and businesses to change behaviors and buy less fuel. People were using credit cards to deal with the bump and now those are maxed. Of course globally the energy thing is especially disastrous
" What Is Demand Destruction?
In economics, demand destruction refers to a permanent or sustained decline in the demand for a certain good in response to persistent high prices or limited supply. Because of persistent high prices, consumers may decide that it is not worth purchasing as much of that good, or seek out alternatives as substitutes.
Demand destruction is most often associated with the demand for oil or other energy commodities.
Key Takeaways
Demand destruction occurs when a period of high prices or restricted supply causes consumers to permanently change their behavior.
This results in a reduction of demand for a good even after the supply of the good goes up and/or its price goes down.
This phenomenon is most often associated with the demand and prices related to energy commodities such as crude oil or gasoline."
Demand Destruction: Meaning, Overview and FAQs
Demand destruction occurs when persistent high prices and/or limited supply ultimately result in a permanently reduced demand for some good.www.investopedia.com
Silly to talk about "levels of support" when a real event impacted a company. The issue is beyond any voodoo TA and will depend on how much NVDA can mitigate the government action.
Seigel was first to say we need to raise rates in 2021. Now he is saying that inflation is coming down quickly (much of it was artificial due to COVID and Russia) and the Fed is in danger of going too far. He's likely right on both counts.
Bought SOXL last night in after-hours once the new broke. Did a nice trade of it last month. Let's see if I can go 2 for 2! :)
You can say silly all you like, there’s a reason pretty much everyone uses it these days and whether you do or not doesn’t matter.
People using made up numbers is fine sometimes, but not when a real event happens that you can actually calculate its impact.
Anything is news that can impact a stock whether it’s earnings miss, guidance reduction/raise, sanctions, supply chain shock, government restrictions…etc its all news that can greatly affect a stock. They’re all events that can move a stock, whether you put more significance on one over another is besides the point.
You are right to play options in this market. Best way to capitalize on volatility. You can minimize your potential losses while maximizing your profits.
Technical analysis is not voodoo. The market has followed it to the tee.
House of cards. TA is meaningless in reality. It is only useful because other people incorrectly think it is useful.
We are going to have agree to disagree. Fundamentals are important and intuitive so it makes sense to the lay person, but for the professional traders technical analysis is just as important if not more important. Technical analysis is grounded in market psychology. I don't know about house of cards.
I think you have a point by saying that people using TA is a large part of what makes it useful. If enough people see a level of support or resistance, and buy or sell accordingly, then that level will prove to be the support or resistance they thought it to be. It's a self full filling prophecy of sorts.
Along with most market participants.RG1 reading his TA charts:
As I have likely said before… Thank god for investors like yourself or else my job would be much more difficult.RG1 reading his TA charts:
I'd say about 20 years ago he'd have been in the majority with that line of thinking but today he'd be in a shrinking minority.
That seems to be an insignificant differenceJobs and wages come in cooler:
Payrolls rose 315,000 in August as companies keep hiring
Nonfarm payrolls were expected to increase 318,000 in August, according to Dow Jones estimates.www.cnbc.com
