US stock market recap for June 8th
【Jensen Huang Calls for Buying Again, Semiconductors See a Major Rebound, Is the Correction Over? Will It Fall Further?】
Today, the S&P 500 and Nasdaq rebounded, recovering some of their losses. However, the overall trend was a rally followed by a pullback, with significant selling in the final hour. It seems a lot of capital is taking the opportunity of the rebound to take profits and exit.
Among S&P 500 constituents, only 36% rose, indicating limited breadth. The main driver of the rebound came from the semiconductor sector, which plummeted last Friday.
SOX
Today, it rebounded 5.6%, recovering half of last Friday's losses. All 30 constituent stocks rebounded, performing well 👍
Is the correction over? Looking at SOX's technicals in the short term:
Improvement: Break above last Friday's opening price, resuming the uptrend.
Deterioration: Fall below last Friday's closing price, indicating further declines.
Short-term technical tracking for several hot constituents:
INTC: Double top pattern; a break below 105 could lead to a larger correction.
MU: Small top formation; a break above 1100 would resume the uptrend.
ARM: Small top formation; a break above 390 would resume the uptrend.
AMD: Small top formation; a break above 500 would resume the uptrend.
QCOM: Not quite a top formation yet; a break above 240 would resume the uptrend.
AVGO: Broken support, hasn't stopped falling yet.
MRVL: Relatively healthy; would only weaken if it falls below 252.
ASML: At new highs, not a big issue.
TSM: Holding at high levels, not a big issue.
NVDA: Sideways consolidation, nothing much to see.
I expect the decline isn't over yet. My views are as follows:
1. Last Friday's drop wasn't deep enough; risks haven't been fully released.
2. CPI data will be released this Wednesday. If it comes in hot again, expectations for rate hikes will increase once more.
3. SpaceX's subscription is hot, absorbing some speculative capital.
4. Technically, today's rebound momentum was somewhat lacking.
However, Donald Trump and Jensen Huang probably don't want to see the market continue falling 😄😄
One is busy trying to solve the Iran issue, the other is in South Korea calling for buying~
Jensen Huang's remarks in Seoul:
Market corrections are buying opportunities; we should be happy to buy stocks at a discount. Just last week, he called for buying MRVL and felt his influence. Today, he's calling for buying again.
But, buying on a dip is fine. With him calling for it, the discount is gone 🤷
Without Jensen Huang's remarks, I expect today's market performance wouldn't have been as good.
Views on adding positions:
Maintain the ratio from last Friday's review. In my view, these are very safe positions.
If your investment style is more aggressive, you can adjust the ratio upwards according to your own risk tolerance.
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