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Market Broadening?

edited August 29 in Other Investing
Guess who made the new highs today? DJIA and equal-weight SP500 RSP. The AI/growth area was hit with NVDA woes. StockCharts from 10/28/23.
https://stockcharts.com/h-perf/ui?s=$INDU&compare=$COMPQ,$SPX,RSP&id=p99878632038

Comments

  • edited August 29
    This morning when NVDA was down about 3%, all three indices were up nearly 1%. So, what caused Nasdaq and SPY to close negative to unchanged? Any specific news or just a change in general mood that caused the change during the day?

    Technology, Staples, and Real Estate sectors are down for the day.
  • edited August 29
    In reality, the prognosticators just guess as to what causes daily stock market performance.
    No one knows absolutely for sure...
    Barron's provided the following plausible explanation - I'm paraphrasing here.

    Good economic news seemed to drive the market early.
    There were upward revisions for second-quarter GDP while the PCE index slowed from 2.6% to 2.5%.
    Weekly jobless claims were also lower.
    Later on in the trading session some investors sold tech shares after the Nasdaq's rise.
    https://www.barrons.com/livecoverage/stock-market-today-082924
  • edited August 29
    I don’t think it could have gotten more lopsided than this year. But, then again, I’m always surprised at the irrationality of crowds and the power of herds to move things.

    Yes.
  • edited August 29
    @Observant1, the PCE index release is TOMORROW, 8:30 AM Eastern time with est +2.6%, core +2.7%.
    Barron's was just commenting on general trends, including the PCE index up to the LAST month. I thought I had missed something, so I double-checked.
  • I see. Thanks for the info, yogi!
  • So, pump and dump, I guess
  • edited August 30
    ”I wonder where the hell they find these financial "journalists". I guess the same place they find the so-called "analysts" who simply follow each other around staying close to consensus "thinking". Maybe they recruit in middle schools!

    (Comment by “Mr. Skin” / Bill Fleckenstein’s Daily Market Rap - 8/29/24 / subscription required)


    My own thought is to apply a different twist to Marie-Antoinette’s famous “Let them eat cake”. In good times the media and their porn-star analysts deliver to the adoring masses that possessing the outer appearance of cake. Later there may occur a nasty case of indigestion.


  • One can choose of not following the crowd. Market fell this week even with good earning from Nivida.

    Thought I saw market.broadening, but it was a mirage. Wonder if the market will reacts poorly if the Fed plays it safe and cut 25 bps instead of 50 bps.

    CME has 30.5% probability of 25 bps cut.
    https://cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html
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