SOUNDING OFF ON TECH/FINANCIALS
From yesterday:
To be as blunt as possible, until they fully get the technology arena including them semis, it’s gonna be very tough to take the big indices down. There is just so much technology concentration. We have seen days with the Dow was up 400 but the S&P was flat because the technology stocks were weak that day and we’ve seen days with the Dow down 400 points but the S&P was up because tech was strong. That tells you everything you need to know about how important technology is to the big indices.
Many lesser names in tech have already been bearish but still plenty of strength in the AI/SEMIS/ DATA STORAGE and all that. They came after a lot of that technology yesterday leaving even a more narrow list of continued strength as many more went by the wayside but now, them financials.
We have been on avoid for pretty much a ton of the financials except the big banks. The big banks have been holding well. Yesterday, they were getting the big banks. This is not good news. There is quite the worry about exposure. Yes…exposure to the massive amount of debt being put out there for a lot of the AI stuff. In bear phases have already been the companies that invest in all these areas. We are seeing insurance for credit default swaps jump and we mean jump for names like COREWEAVE and others. We worry about an ORACLE who announces monster numbers but then watch the stock basically crash. DEBT is a 4-letter word every now and then.
Tomorrow…NVIDIA.
New lows picking up markedly even though big indices are way above the lows of April.
Advance/declines another terrible. day.
Crypto remains not happy. Bearish phase of unknown price and time continues.
Markets oversold so bounces any time but a lot more technical damage being done. Big indices finally CLOSED below the 50 day moving average yesterday for the first time since late April but only by a wee bit. They had better pick up the slack and quickly.
Money continues into lower beta areas like medical/drugs and things that have been comatose for a long while.
A continued goal line stand needed.