To The Moon

On Monday (07 Oct) the market gave a negative bias throughout the entire session. Slight declines was seen on the major indices initially, which saw heavier declines in the afternoon.

The S&P 500 settled with 0.96% lower, while NASDAQ fell by 1.18% and DJIA was down with 0.94% lower. Russell 2000 ended with a 0.8% loss.

Profit-taking After Recent Strong Performance Trigger Sell-Off

After the recent strong performance, we saw profit-taking activities which trigger the sell-off. Major indices were near record highs, buoyed by a robust September jobs report.

Additionally, geopolitical concerns regarding potential tensions between Israel and Iran contributed to the negative sentiment.

This led to a significant rise in oil prices, with WTI crude oil futures climbing 3.7% to $77.18 per barrel. The price increase was also influenced by Hurricane Milton intensifying to a Category 5 storm.

Sector Performance

S&P 500 energy sector was the only one to close higher, gaining 0.35%. Chevron (CVX) rose 0.3% to 151.13 after selling interests in the Athabasca Oil Sands Project and Duvernay Shale for $6.5 billion.

Utilities sector faced the largest decline, falling 2.32%. The communication services sector dropped by 1.97%.

Meta Platforms (META) dropped 1.9% to 584.88, despite being up earlier by 1.2%. Broadcom (AVGO) decreased by 0.9% to 175.08 after an initial rise of 0.9%. Apple (AAPL) fell by 2.3% to 221.69 following a downgrade to Hold from Buy at Jefferies. Amazon.com (AMZN) declined 3.0% to 180.88 due to a downgrade to Equal Weight from Overweight at Wells Fargo.

Interest Rates

During the session, the rising market rates also contributed to the equity sell-off. The 10-year yield increased by five basis points to 4.03%, and the 2-year yield rose by seven basis points to 4.00%.

Stocks To Watch

$SUPER MICRO COMPUTER INC(SMCI)$ shares surged over 15% following the announcement of significant AI server deployments. The company revealed it has recently deployed more than 100,000 GPUs with its liquid cooling solutions for major AI factories and cloud service providers, boosting investor confidence in its innovative technology offerings.

We might see some correction from SMCI if we looked at the mid-term from MTF, as it is trading below both short-term and long-term MA, while MACD did present a rather positive uptrend with possible bullish MACD crossover, we could take advantage of the current low stock price.

Google (GOOG) is appealing a court ruling in favor of Epic Games, arguing that the proposed changes to the Android and Google Play ecosystem could compromise user privacy and security. Google contends that these changes, intended to allow third-party app installations, may reduce competition and negatively impact consumer experience.

$NVIDIA Corp(NVDA)$ shares rose nearly 4% as anticipation builds for CEO Jensen Huang's keynote at the Consumer Electronics Show in January 2025. Investors are eager for potential announcements regarding the GeForce RTX 50 series, which could highlight Nvidia's continued leadership in GPU technology.

I am expecting more upside coming from NVDA as the MTF has given a strong uptrend supported by nice upside trading above both short-term and long-term MA, and the MACD also give a confirmation support by forming a potential bullish MACD crossover.

So I am holding onto my NVDA position as my selling price target is around $180 (which I will sell partial).

$Exxon Mobil(XOM)$ continued its upward trajectory, marking a seventh consecutive session of gains amid rising oil prices driven by Middle East tensions. The stock has benefited from the recent surge in Brent Crude prices due to geopolitical concerns.

With the strong support from the energy sector because of rising oil prices, I believe XOM have more period of strong uptrend, and MACD is already making a very strong upside movement, hence, I would think that the current price might be a bit high to enter, unless we wait for a correction on the oil prices.

$Occidental(OXY)$ also experienced gains, closing higher for the seventh straight session. The company is capitalizing on the current oil market dynamics, supported by recent funding for its carbon dioxide sequestration projects.

Pfizer (PFE) shares climbed nearly 3% after activist investor Starboard Value acquired a significant stake in the company, pushing for strategic changes. This move reflects growing investor interest in Pfizer's potential for operational improvements.

Lockheed Martin (LMT) reached an agreement with the U.S. Department of Defense to address software and hardware upgrades for its F-35 jets. The deal involves a substantial investment to enhance the Pentagon's testing facilities, aiming to deliver upgraded jets by year-end.

Summary

Today’s market might still see energy stocks continue to perform on the back of rising oil prices, but there might be some strength coming from NVDA to support the information technology sector, so some of the semi names like SMCI, $Advanced Micro Devices(AMD)$ and NVDA should still do fine.

I am holding onto my AMD as this chip stock should do well in the long term,

Appreciate if you could share your thoughts in the comment section whether you think market might give another negative bias or give a slightly better vibe while we wait for Wednesday (tomorrow) CPI data?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.