To The Moon

S&P 500 decreased slightly by 0.02%, while the NASDAQ edged up by 0.04%. DJIA saw a 0.37% increase, but the Russell 2000 fell by 0.3% after leading index gains earlier this week.

The market exhibited a negative bias due to rising rates and the belief that the Federal Reserve may not be as aggressive as previously anticipated, following solid economic data.

At the NYSE, decliners led advancers by an 11-to-10 margin, and at the Nasdaq, the margin was 3-to-2. Stronger-than-expected September retail sales and less alarming initial jobless claims were key data points this morning.

We will be watching September Housing Starts and Building Permits report, scheduled for release at 8:30am ET on Friday (18 Oct).

Note Yield Rose Higher

The 10-year Treasury yield increased 19 basis points from 4.03% to 4.115%, while the 2-year yield rose 4 basis points from 3.95% to 3.986%, having reached 4.00% earlier.

S&P 500 Energy and information technology led the S&P 500 sector

Energy and information technology led the S&P 500 sectors gained +0.44% and +0.42% respectively, three other sectors also ended the day higher.

Financials sector rose +0.32%, rate-sensitive sectors like utilities and real-estate ended lower, down by -0.93% and -0.69% respectively.

Stocks To Watch

Chip stocks, including $ASML Holding NV(ASML)$ saw recovery after a recent sell-off, with the iShares Semiconductor ETF (SOXX) climbing 2% and $Taiwan Semiconductor Manufacturing(TSM)$ leading gains. The tech sector's volatility in October was noted by UBS, but the positive earnings reports helped bolster confidence in the market.

Despite initial market concerns after ASML's financial update, TSM's performance lifted sentiments in the semiconductor sector, with other chipmakers like $NVIDIA Corp(NVDA)$ and $Advanced Micro Devices(AMD)$ also seeing gains.

For AMD we need to be aware that it is currently trading near the short-term MA, we need to see a clearer signal for us to be confident, and MTF is showing uptrend for longer period, so I would think it would be good to monitor this stock.

I am holding onto my position and might add more position if the stock price does adjust.

For Nvidia, we have a clear upside as seen from NVDA trading above both the short-term and long-term MA, and MTF is also giving a signal of a strong uptrend, and we are seeing a potential MACD crossover, but we might want to watch Friday’s trading (18 Oct) if there is any selling for profit taking.

I am holding my position as my sell price target is around $150 to $160.

Summary

We might see another negative bias if we see profit taking activities on some of the earnings and semiconductor stocks, we might see some action from $Netflix(NFLX)$ trading as well.

Appreciate if you could share your thoughts in the comment section whether you think market is going to present another negative bias to end the week on Friday (18 Oct).

@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.