Hope your week is going well! Just been looking at the charts today and man, the market is giving us some serious mixed signals right now.
On one hand, we had a pretty solid green day. The S&P 500 closed up 0.89% and the Nasdaq jumped 1.29%. The VIX is actually cooling down a bit, dropping back to 17.06. But then you look at the macro picture...
WTI crude oil is creeping up to $94 a barrel mostly because of all the crazy geopolitical tension (missiles flying between the US and Iran, plus the Houthi threats in the Red Sea).
Yields are climbing too. The 10-year US Treasury yield ticked up 3bps to 4.6%, the 30-year is at 5.1%, and the 2-year hit 4.16%. Add in a strong dollar (DXY at 101.04) and you've got a really complex environment..
We've got Big Tech earnings dropping tomorrow, which is why semiconductor stocks like Nvidia and Micron had a nice run today. It's actually pretty wild—AMD announced their new 'Helios'
architecture, and Nvidia immediately fired back by revealing their 'Vera Rubin Lux' design. Meanwhile, Apple is rolling out a new device leasing program.
So, how do we play this?
The Fear and Greed index is still sitting at 41% (Fear). Honestly, I think this is a prime opportunity to dollar-cost average (DCA) into tech. I've been looking heavily at MAGS (the Magnificent Seven ETF) and QNDX.
