Euphoric exuberance all around The markets have been in a very buoyant mood lately. And calm despite the macroeconomics. That just makes me more cautious. Despite overbought levels and market worries as well as bearish sentiments, the market keeps driving up. Now, sentiments have turned bullish and many are saying the markets have entered a new bull market. Really? I beg to differ. In fact, the markets have all the hallmarks of a top. 1. Narrow breadth. Only 6 or 7 megacaps lead the market. This must be one of the thinnest 'bull market' ever! 2. The equal weight broad market market index is trending down. The divergence from the normal broad market index cannot be understated. 3. The market have never bottomed so way ahead of the Fed's final rate hike. And they may not be even done yet!

I love you 5000? The markets have entered a bout of volatility at around these levels and time period. Euphoria is in the air on the back of new highs achieved as well as the narrative of a soft landing really catching hold. Data supports this soft landing approach and that is why I am still putting that on the table to be pragmatic despite my gut feelings telling me that a recession is still a big possibility. Inflation is however the cat in the bag and that shows with the market sell off with the slightest inclination that inflation is not done and dusted.  The market picked itself up rather well however post that sell off to rally back strongly with the broad market index reclaiming 5000 in the process. So where are we heading in the midst of this up and down? I have advocated

Is Tesla a buy at these levels? Tesla flirted around 150 levels in its recent sell off before finding its footing and rebounding to the 175 levels where it is hovering around at the moment. So is it a buy? It depends on your time frame really. Is Tesla a good company? It is fundamentally sound although it still has some issues to sort out especially in this macroenvironment. But few companies have the resources AND the guts to do what they do venturing into avenues that borders on uncharted territories. Well that is because there is only one Elon Musk. As eccentric as he may be, he does venture where no one does or even dare to. So there you are. Especially in a world primed to go AI crazy, Tesla will be very relevant moving forward being firmly entrenched in the new world.  Howe

Loving a good bargain!  It looks like the market sectors are taking turns to take blows from the possible effects of the FOMC efforts to rein in inflation by tightening money supply as well as of course inflation itself. The tech sector is not immune as discretionary spending is reduced thanks to elevated prices of essentials and necessities. Couple that with inventory correction and we can see tech companies one after another reducing estimates just a few months later. How long this pressure on earnings will last depends on multiple factors but what is more important is the opportunity that arises from it. I will not deny that the consumers are hit hardby inflation as are the enterprises. However, I believe there is a silver lining and there will be some companies that emerge stron

Nvidia Gains Entry into the Dow: What Does This Mean for the Tech Stalwart? In a significant milestone, Nvidia, the leading designer of graphics processing units (GPUs) and a dominant player in artificial intelligence (AI), has gained entry into the prestigious Dow Jones Industrial Average (Dow). This move, widely seen as a recognition of the company’s rapid growth and influence, marks a new chapter for the tech giant. But what does this really mean for Nvidia and the broader market? Let’s take a closer look at the implications. A Symbol of Prestige and Stability Being included in the Dow is no small feat. The Dow Jones Industrial Average is often regarded as a bellwether for the U.S. economy and includes 30 of the most influential companies in the country. For Nvidia, joining this elite g

Clean Energy vs AI When you pit two up and coming important features of the new world economy, you know it is never going to be a straightforward answer. So that is the disclaimer there! Both have their own merits and place in the economy and to be clearer, both represents the up and coming. This is not comparing between businesses in the sunset industry. These are categories up there in the rising industries and as such rapidly growing ones. In these categories, companies that are innovative as well as nimble to adopt new technologies as well as corner market share and create a moat will rise as the new behemoths while the others nibble at their feet. Think of where Apple and Microsoft were decades ago. Look at them now. These ‘matured’ companies are trying hard to keep pace and avoid be

Mid Term elections day No matter how apolitical you might think the market is or should be, we cannot deny that market policies and government spending etc are ultimately decided by politicians. Hence, the direction they are taking in terms of steering the country and the implications will ripple onto and into the very fabrics of the society they are leading and that of course includes the economy as well. That is why the decisions they make impact livelihoods and hence the big responsibities they shoulder. The markets like stability. And a clear direction. Hence, it would be in the best interest of the market to see a clear and undivided leadership. And in terms of US politics, that means control of the house and senate by the same party that the president belongs to. The logic

FOMC party aftermath The markets $DJIA(.DJI)$ , $NASDAQ(.IXIC)$ and $S&P 500(.SPX)$ retreated on Wednesday.The FOMC did not surprise and instituted a 50 basis point hike as expected. The market retreated after the Fed's announcement. And as alluded in the previous article, the previous day's price action look very much like a bull trap.The bulls did not carry the gap and the necessary support was lacking. The bears were waiting and now it looks like they are taking over vontrol.  Technically, the B wave of Wave 2 looks to have complete after nicely touching the 4100 levels. The C wave is possib

Microsoft vs Apple Being the two main stalwarts of the stock market, the jostling between these two heavyweights will be a hallmark of the market. Always vying for market shares in a tech dependent economy, who goes ahead will now depend on who gets a firmer grip hold on the AI driven trend that is driving the economy forward.  It is a very interesting but healthy phenomenon indeed and in terms of scale and sheer presence, no one else comes close and this is reflected by the heavy weighting each carry in the main indexes.  Back to the topic if Microsoft will surpass Apple in market cap, being so closely aligned to each other, I believe there will come a time when Microsoft will eventually surpass Apple but much like two racers who are at it with each other, they will each take tu

Semis Sell Off: Buy the Dip? The semiconductor industry, often referred to as the "backbone of modern technology," has recently faced a significant sell-off. This sharp decline in semiconductor stock prices has left investors pondering whether this is a more significant market correction or an opportunity to "buy the dip." Understanding the Sell-Off Several factors have contributed to the recent sell-off in semiconductor stocks: 1. **Market Sentiment**: Broader market volatility and fears of a slowing global economy have hit tech stocks particularly hard, and semiconductors are no exception. 2. **Supply Chain Disruptions**: Ongoing supply chain issues, exacerbated by geopolitical tensions and the lingering effects of the COVID-19 pandemic, have led to production delays and increased costs.