The Magnificent Seven Halts Its Losing Streak as Bonds Bounce
Even as the trading action improved, market players are struggling with two issues. meanwhile, Trump Media's play for a crypto firm helps the Bitcoin sector.
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After five straight days of losses, the Nasdaq 100 QQQ and Magnificent Seven MAGS managed some positive action Monday. There was lackluster action in other areas of the market, especially the Russell 2000 IWM, but breadth improved from around 6,100 gainers to 3,300 losers. While there were more new 12-month lows than 12-month highs, there were pockets of speculative action for traders.
Market players are struggling with two issues right now. The first is increased concerns about inflation, and the second is the fallout from Trump's cabinet appointments and policy. Biotechnology IBB is a good example of a sector that has been under pressure due to concerns about how Robert Kennedy Jr. might impact policy at Health and Human Services.
The Magnificent Seven names were due for a bounce following recent weakness, but earnings from Nvidia NVDA are going to have a significant impact on where the group and semiconductors SMH are heading in the near term. Nvidia did a good job of bouncing back on Monday after concerns about their Blackwell chip appeared in industry reports.
An interesting piece of late news is that Trump Media DJT is in talks to acquire crypto firm Bakkt Holdings BKKT. This helped the entire crypto sector and suggests that the recent trend in the group may be at an early stage.
The best thing that could happen for the market now is that new support levels hold, and a foundation is built for a move when seasonality starts to hit during Thanksgiving week.
Have a good evening. I'll see you Tuesday.
At the time of publication, Rev Shark was long NVDA, DJT and IBIT.
