Weekend Update - 3|10|24

The broad S&P 500 pulled back by 0.26% this week, Dow  fell 0.93% and Nasdaq was down 1.17%, respectively. 

In the economy front, the job numbers came at 275,000 compared to an estimated 198,000. However, the unemployment rate unexpectedly went up to 3.9% and wage growth which was lower than expected. Wages rose just 0.1% for the month, and were up 4.3% from a year ago. 


On last Thursday night, I wrote about the investment group that Semiconductor/AI stocks have run too much too fast and to take some chips out of table. And on Friday we saw some hurricanes in the sector. What a coincidence!! 


Last Friday, Nvidia (NVDA) went as high as $974 and came down to $865. That’s $109 swing on a single day. This is what happens with the Algo/HFT trading these days. Big players are too big to control! It seemed like a well orchestrated plan by Wall Street. When such pullbacks can happens to the AI leader with $2.4 trillion valuation then think what can happen to small companies!! Hence, taking some profits when time is good is the essence and have some dry power available to deploy as needed. Anyway, this took the whole Semiconductor and AI stock down on Friday. The big players would scare the retail investors to take advantage of buying low. Usually, that’s how market is played by the funds and institutions. I believe that the AI trend has a long way to go. How great a stock may be, there will always be pullbacks. And that’s healthy for the stock and overall market. That brings new buyers/money to the market. It’s estimated that there is still about $6.6 trillion siting in the money market and all together $8.8 trillion of cash is sitting not the sidelines. When market goes up some of those money should come to the market. More in my next blog..


On the earnings side, I will be looking forward two key EARNINGS:

MON, 3/11: Oracle (ORCL) => I have no position on this as of now

WED, 3/13: Ui Path (PATH)

THU, 3/14: Adobe (ADBE). This would be a market mover. We will see how the software side of AI is going. This should provide some insight for sure.


Madrid Pharmaceutical (MDGL): The FDA set an approval date of March 14, 2024, this Thursday. There are currently no therapies approved by the U.S. Food and Drug Administration (FDA) for treating NASH, a liver disease that affects an estimated 6% of Americans. We will see how it goes..


This week we will have a series of critical economy data:

TUE, 3/12: Consumer price index (CPI)

THU, 3/14: Retail Sales for FEB

THU, 3/14: Producer Price Index (PPI)


Stock to watch this week: NVDA, AVGO, SMCI, ADBE, SOXL, PANW, MDGL.


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