The upcoming CPI and PPI reports are likely to have a significant impact on the market, as they will be the first major inflation data since the war that reflects the sharp drop in oil prices in June. I think we could see cooler inflation readings, which might lead the Fed and the market to dial back their hawkish stance on potential rate hikes. That scenario could put downward pressure on the dollar and Treasury yields, potentially fueling a market rally. Sectors that are sensitive to interest rates, like tech and small caps, along with precious metals, could be key beneficiaries. $Invesco QQQ(QQQ)$ $Direxion Daily Small Cap Bull 3x Shares(TNA)$ $iShares Si
$Meta Platforms, Inc.(META)$ Meta's plan to invest $9.1 billion in an AI data center in Canada is a significant move. Some analysts had speculated that when Meta mentioned renting out unused compute capacity, it was an early indicator of overbuilt data centers, which contributed to the sell-off in chip stocks. Honestly, that view seems off the mark. The reality is that hyperscalers are continuing to ramp up their investments in AI infrastructure. In addition to Meta's $9.1 billion commitment, Amazon has also announced a $25 billion debt offering to fund more AI data center construction. This is positive news for the semiconductor sector overall, and particularly for memory-related companies. $Micron Techno
$Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ For those who got in at $155, congrats. I've been averaging down and my December 2024 calls at $160, $165, $170, and $172 are all doing well. It feels like a bottom might be in. Micron's forward P/E is now around 9-10x, which looks very cheap. Honestly, a lot of the companies in this sector seem to be in a similar valuation range. With valuations this low, money could start flowing back in. If it weren't for the geopolitical tensions right now, I think the stock could be over $300 without much trouble.
$Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ 200July 17 calls are in place. The short-term chart looks oversold, and the recent strikes might be setting up a tactical move. Semis could see a decent move up before the week is out.
$Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ I added some NVDA at $195.58. I might also buy more if the market offers a lower price, as I think that could be a good opportunity. Watching SPY, QQQ, and SOXL as well.