Posted on 02/09/2018 1:03:42 PM PST by Hojczyk
S&P 500 2,619.56 +38.56(+1.49%)
Dow 30 24,190.83 +330.37(+1.38%)
Nasdaq 6,874.49 +97.33(+1.44%)
(Excerpt) Read more at finance.yahoo.com ...
The program traders are either making a fortune or losing one
A lotta lead changes in the market today.
NVDA +14.92 at the close.
Oppenheimer’s Rick Schafer maintains a Perform rating on Nvidia’s stock with no assigned price target.
Nvidia came into its Q4 earnings report with a “high bar,” and the company cleared it, Schafer said in a note. Sales of $2.91 billion and an EPS figure of $1.69 both came in “easily ahead” of the Street’s projection of $2.68 billion and $1.16 per share, the analyst said. Revenue from the data center, gaming, pro-visualization and OEM segments each came in at least 5 percent ahead of the consensus.
It was the seventh consecutive quarter where Nvidia more than doubled data center revenue, reaffirming the “significant market size and opportunity” the company has in artificial intelligence given its virtual monopoly in data center accelerators., Schafer said. The company’s V100 product boasts clients from some of the largest international companies, and continued adoption will drive average selling price and margin growth, he said.
Despite Nvidia’s impressive 41-percent revenue growth rate in the quarter, the stock is trading at a multiple north of 30x the analyst’s 2019 estimates, which implies a “balanced” risk-reward profile, the analyst said.
When the market was going up, the media attributed it to an extension of the Obama economy. When there was a downward correction, it suddenly was described as an end to “the Trump market.” The media are nothing if not predictable.
The media hatcheted the Bush economy daily even as it benefited from tax cuts. This finally spooked consumers and investors, pushing the economy into recession. After Obama took over, there was endless happy talk.
I took a bit off the table at the open today to get to an allocation of about 60/40.
I see today the Dow bounced off the 200 day average which is a good sign but I want to see that level tested a bit more before I move back to 80/20.
The Leftist Media Complex is dying to tank the economy.
Yesterday’s thread of about 183 posts was great...no change from our discussion...nothing has changed.
I think most of the elevation near the close was the bigger players buying back their shorts.
Maybe not, but a considerable amount of damage has been done to the charts this week. It will be awhile before we see 26,000 again, methinks.
I’ll put this in here just for sh!ts and giggles. I’m old enough to remember this and was fully invested all the while. Along with the August 12, 1982 closing low of 776.92, Black Monday was one the two greatest buying opportunities of the 80s decade.
https://en.wikipedia.org/wiki/Black_Monday_(1987)
In finance, Black Monday refers to Monday, October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The Dow Jones Industrial Average (DJIA) fell exactly 508 points to 1,738.74 (22.61%).[1
The Black Monday decline was—and currently remains—the largest one-day percentage decline in the DJIA.
Following the stock market crash, a group of 33 eminent economists from various nations met in Washington, D.C. in December 1987, and collectively predicted that “the next few years could be the most troubled since the 1930s”.[10]
However, the economy was barely affected and growth actually increased throughout 1987 and 1988, with the DJIA regaining its pre-crash closing high of 2,722 points in early 1989.
I bought clients some pharmaceutical stocks the week prior to the 87 “crash”. Within a year they were profitable.
What we see here is normal, the market was extended.
A 26,000 high is unsustainable. We’ve been tempting a correction for awhile. QED dollars are easy and cheap, fueling riskier and riskier bets by investors. Signs of inflation have been popping up for months, but investors looked the other way to ride the gravy train. Now, wages have surged, bond yields are rising and commodity prices are starting to climb - and finally the investment class took notice. Probably because the easy money may start drying up.
Overall economy remains strong, with consumer and business confidence high and corporate earnings setting records. Housing bubble hints at need for small rate hike, but the market is finding its equilibrium.
Good post.
Caught a little bit of Joe Kernan this morning, and he said that over the past several months, he lost count of the number of experts who had been on Squawk Box saying that a “10% market correction was desperately needed.” He said the same experts now are foretelling the end of Western Civilization with the market dip.
At the market’s lowest point this past week I checked my portfolio. I lost a lot of money. But you know what? My portfolio was still up by 10.57% overall since July 2017.
So a little market context is helpful.
I’ll go out on a limb and say we’ll be back to 26 thousand by mid-year.
Yeah, that’s what I’m thinking too. Maybe a bit longer perhaps, but we’re going back. After eight years of artificial steroids there is now a purging correction. People are getting off food stamps and going back to work. The tax cut is unfolding. Businesses are - finally - being deregulated. The economy is spring-loaded. A correction is good.
We need to get interest rates back up to encourage saving, but moreso to have an economic stimulus available the next time we need one. Zero is not the way to go through life.
26500 will settle as the new floor after the next couple of weeks
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