MarketSurge powers the charts in this video.
SPY and QQQ are getting all the headlines with closing at or near all-time highs, but the price action under the surface has been deteriorating. Micro, small, and mid-cap have been under pressure lately. Most high-momentum stocks (the ones that are up the most year to date) also had a sizable haircut last week. Maybe the reason is the rise in interest rates or people are taking profits but we are back to a market held by a few mega-cap stocks.
The big news came from Google last week. They announced a major breakthrough in quantum computing and the stock broke out new new all-time highs. Quantum computing stocks have been on fire in the last few months – IONQ, RGTI, QUBT, etc. Google reminded us that they are a major player in almost any cutting-edge industry nowadays – from AI to self-driving. What many missed to point out is that Google used Nvidia CUDA Q platform.
Yes, Nvidia is at the center of everything but it has been acting as a source of funds lately. It could not rally even on a strong earnings report from Broadcom (AVGO). Maybe it needs a proper shakeout to 120 before it tries to rise again.
In the meantime, crypto is in its own world. Bitcoin and Ethereum are near all-time highs. Every day we hear about a different company announcing a strategic reserve in Bitcoin. We will likely see many more of these announcements. This should not make you complacent. Nothing is fully immune against rug pulls and risk-off selloffs. The good news is that portfolio protection is currently cheap.
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