The Weekly Selection: 09/08/2024
Vol. 104: Potato Chips
Investors,
We return for another week on this fine Sunday. With more key data out of the way over the last several days, we see market direction begin to become decisive. As we discussed last week, the market is not only forward looking, but also reactionary in the short term when economic surprises come to pass.
Indexes slid, carrying many of the subsectors with it. Biggest losing groups were industrials and semiconductors/chip manufacturers, hence the title of this volume.
Speaking of which, lets take a look at some of the highlights from the bigger ETFs below.
Indices
SPY 0.00%↑ up first. As we can observe, efforts were made in the price action above the previous all time high. Personally, I would have liked to see this (obviously), but I understand that proper basing is required after nearly a year of straight gains in the market. I would like to see a higher low put in from the early august test, as this would confirm the consolidation, and not lend way for a downtrend.
GOLD 0.00%↑ up next. Note the more consolidative price action. Versus the market, Gold is holding up, or showing relative strength. This is good to see in a market where most stocks/groups are trading down. Gold, in the event of a market turnaround should show relative strength.
Parabolic Trend Analysis
We all talk about how NVDA 0.00%↑ has seen a 700% rise in price over the last few years, but few speak of its original 700% run, from IPO to the march 2000 highs. This run was fueled by the launch of their NVDA 256 GPU, the first of its kind. Additionally, the run was supported by strong financial growth, as well as key partnerships and acquisitions to feed the run higher in the expansion of the business.
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Past Performance
With the market continuing to push into ATH for the 9th month in a row, the froth at the top is starting to become apparent. Relative strength ideas are not sticking, and its becoming increasingly difficult to pick stocks that withstand for more than a few days. ASML 0.00%↑ got waxed this week, as chips took the biggest hit of anything.
Charts
GLD 0.00%↑ is #1 on my watchlist this week as there really isnt much to pay attention to.
AFRM 0.00%↑ is a nice EP look as well, holding up well during the pullback.
Aerospace and defense has held up as well, LMT 0.00%↑ is the clear leadership name.
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