Here's the Real Reason Nvidia is the Only Stock That Matters
You probably understand correlation in the markets - assets moving together in some kind of relationship, even if that happens to be inverse. It usually makes intuitive sense. If stocks drop, safe-haven assets like gold or bonds move higher as the crowd looks for safety. That makes sense, right? The dispersion trade, on the other…
When the Selling Starts, Markets Could Get Wild
The markets can be the ultimate bandwagon sometimes, and that’s got a tendency to be dangerous. It doesn’t take long for one big, definitive sell order… to be followed by tens of millions of others. At the moment, it’s working the other way; the crowd is into just one or two stocks (which we’ve talked…
Why This Bad Economic Data Was Good for Stocks
So, it seems “bad news is good news” again - we’ve seen this cycle a few times in recent years… Investors have had the chance to digest not-exactly-great economic data several times this week - including today, when the PCE numbers hit the street. None of that data was positive; we haven’t had a single…
These “Magnificent 7” Stocks Just Hit Critical Levels
These stocks have been leading the markets higher and lower for months now, to the exclusion of practically everything else - including hard economic data! (Including PCE, which drops tomorrow.) FOMO-stricken investors and traders are bidding them up to (literally) insane levels. There’s really not much else left to buy… and if there was it’d…
Stocks Are “Coiling” Near All-Time Highs - Mania Could Be Next
If you’ve gotten the sense lately that something is building, you’re not wrong. We’ve seen hyper-concentration in the biggest stocks, to the point where plenty of us are focused on just one. People are chasing crowded stocks and trades, bidding up stocks to nosebleed levels. And yet, tech is still strong. We can tell from…
The "FOMO Trade" Moves Downstream in AI and Crypto
"When YOLO, you're all about FOMO." The Magnificent 7 tech mega-caps and AI are the quintessential "fear of mission out" plays - it often seems there are more bettors there than bona fide traders. But another "leg" has been kicked out from under these stocks" Google. Tune out the noise and we find...the stock is…
What to Do About This One-Stock Stock Market
I can think of 499 stocks that might as well hang it up... Welcome to the S&P 1, where you can buy any stock you want… so long as it’s Nvidia. Buyers only, though - no sellers allowed. I’m only half-joking. Diversification on the S&P 500 is now severely compromised; it’s more concentrated than it’s…
Jeff Bierman talks A.I. with YahooFinance LIVE
Excerpt from the Interview: Jeff Bierman, Theotrade Chief Market Technician, joins Yahoo Finance to discus Nvidia's fourth-quarter earnings and the impact it has on the AI boom in the long-term. Bierman elaborates on potential risks with the market's heavy focus on the tech sector: "It calls into question traditional risk management and traditional investment management…
Why AI Has a Split Personality
Now, there’s no doubt artificial intelligence (AI) will eventually change the world. That’s already starting, but the full impact is probably a ways down the road. Right now, investors’ perception and imagination of AI is what’s really driving the bus. Hopes and fears are what we have to contend with right now. That’s powerful stuff.…
What to Make of Nvidia’s Earnings
Stocks got a little shot in the arm in the last hour of trading on the expectation that Jensen Huang and the Nvidia board would have good news for them. And that’s what they got - big beats, particularly in the revenue column, which saw a 265% year-on-year increase. It’s tough to exaggerate how important…