Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Big Tech Takes the Reins

By Zacks Investment ResearchStock MarketsJun 17, 2021 09:15PM ET
www.investing.com/analysis/big-tech-takes-the-reins-200586860
Big Tech Takes the Reins
By Zacks Investment Research   |  Jun 17, 2021 09:15PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Hey everybody, Dave Bartosiak filling in for Jim “The Count of Montequinto” Giaquinto. He should be back with you folks for tomorrow’s debrief.

A tale of two markets today as big tech tried to keep things rolling in positive territory. Despite yesterday’s Fed announcement about moving up the timetable for rate hikes, financials were bogged down. Worse still, Basic Materials and Energy stocks got rocked to the tune of 3% and 2.9% respectively, wreaking havoc on the small caps.

The Russell 2000 gave up 27.23 points or 1.18% at 2,287.45. The Dow Jones Industrial Average fared a bit better, but still lost 210.22 points or 62 bps at 33,823.46. The S&P 500 nearly hung onto positive territory, shedding just 1.86 points or 4 bps at 4,221.85. The NASDAQ Composite bucked the broad negative trend, instead gaining 121.67 points or 87 bps at 14,161.35.

Chart of the Day

NVIDIA (NASDAQ:NVDA)

The worldwide microchip shortage has been well documented. Supply chain disruptions and product shortages are all the rave nowadays. This hiccup is hitting huge industries like the auto business. That is not stopping tech stocks like NVIDIA from rocking and rolling. Today’s $33.88 move in the stock was good for 4.76% at $746.29.

I wanted to point this chart out for two main reasons. First, just so all of us can admire the massive 20 million share day for the $746 stock. That’s nearly $15 billion in nominal value trading hands in a single stock today. The second part is the textbook moves off the 200-day moving average, shown here in red on the chart. Early March, the stock had one terrible day where it sold off past the 200-day but quickly rebounded the next day. This key level was support later than month and again in May. Buying stocks with solid earnings history when they come down to the 200-day moving average is always a good idea.

Today’s Portfolio Highlights:

Insider Trader: Tracey took some risk off the table today, cutting one position in half while ousting three others. With oil coming under pressure, threatening to dip back under $70, she trimmed her Matador (MTDR) position. Recognizing what she called a “mini-breakdown” in oil prices, she decided on limiting exposure.

If you are a long-term bull in the sector, there is still plenty of hope.

“If you're a longer term energy investor of 6 months to a year, I still expect the energy stocks to continue to rally in the second half of the year, in spite of the big gains they've already had.

But I wouldn't be surprised to see them take a break here. They've been the hottest industry for the past month.”

The ousted names were UnitedHealth (NYSE:UNH), Fastenal (NASDAQ:FAST) and NuSkin (NUS). Both UNH and FAST were only half positions to begin with today.

Surprise Trader: Things are really winding down in Surprise Trader with earnings season about a month away. For now, there are a few names which trickle in from time-to-time. Most of the holdings in the current portfolio will be done away with over the coming weeks, setting up the portfolio for a fresh, clean slate heading into next quarter’s earnings season.

Today, I dumped both Guess (NYSE:GES) and H&R Block (HRB) after disappointing moves following earnings. The key here is to let winners run and dump the losers fast, before they go from bad to worse.

Winnebago (WGO) was added. These RVs continue to stay hot as dealers cannot keep inventory on the lot. It is a good problem to have and there does not seem to be a let-up in the demand, according to rival Thor. Seemed like a decent risk/reward.

Tech Innovators: Selling off holdings seemed to be a theme today as Brian took it upon himself to divest in Tech Innovators. Both Canadian Solar (NASDAQ:CSIQ) and Progress Software (NASDAQ:PRGS) were sold for nearly the same reason, unfavorable Zacks Ranks. CSIQ had come down to a Zacks Rank #5 (Strong Sell) while PRGS is now a Zacks Rank #4 (Sell).

He did replace one of those names with the addition of Xperi (NASDAQ:XPER). This Zacks Rank #1 (Strong Buy) is associated with 3D printing, although Brian was quick to point out the connected car and pay TV services that are also offered by the company. He cites a great earnings history among his chief reasons for adding the name.

That is all we have for you today. Jim will be back at the helm tomorrow I believe.

Have a great night,

Dave


Recommendations from Zacks' Private Portfolios:

Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>


Zacks Investment Research
Big Tech Takes the Reins
 

Related Articles

Chris Vermeulen
What Is Contago In The VIX? By Chris Vermeulen - Oct 28, 2021 3

I have been trading options and coaching / mentoring other new options traders for years. I have seen new traders who were lucky and ended up with some winning trades and others...

Big Tech Takes the Reins

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email