https://www.howestreet.com/2024/07/is-it-time-to-take-defensive-investment-positions-mark-leibovit/
NEXT PODCAST THURSDAY EVENING
Nasdaq Moves Sharply Lower As Tech Stocks Slump But Dow Moves Higher
After ending yesterday's choppy trading session narrowly mixed, the major U.S. stock indexes moved in more starkly opposite directions during trading on Tuesday. While the tech-heavy Nasdaq moved sharply lower, the Dow ended the day firmly positive.
The Nasdaq tumbled 222.78 points or 1.3 percent to 17,147.41, ending the session at its lowest closing level in well over a month. The S&P 500 also fell 27.10 points or 0.5 percent to 5,436.44, while the narrower Dow climbed 203.40 points or 0.5 percent to 40,743.33.
The steep drop by the Nasdaq came as tech stocks came under pressure as the day progressed, with AI darling and sector leader Nvidia (NVDA) plunging by 7.0 percent to a two-month closing low.
Microsoft (MSFT) and Advanced Micro Devices (AMD) also moved to the downside ahead of the release of their quarterly results after the close of today's trading.
The weakness in the sector may have reflected concerns the earnings won't be strong enough to support further upside after tech stocks helped lead the markets to record highs earlier this month.
Among tech stocks, semiconductor stocks turned in some of the worst performances, resulting in a 3.9 percent nosedive by the Philadelphia Semiconductor Index. The index slumped to its lowest closing level in well over two months.
Shares of Lattice Semiconductor (LSCC) plummeted by 9.4 after the chipmaker reported weaker than expected second quarter results and provided disappointing third quarter revenue guidance.
Computer hardware are saw significant weakness on the day, dragging the NYSE Arca Computer Hardware Index down by 2.2 percent.
On the other hand, telecom stocks showed a substantial move to the upside, driving the NYSE Arca North American Telecom Index up by 3.5 percent.
Network solutions provider Lumen Technologies (LUMN) helped lead the telecom sector higher, skyrocketing by 37.6 percent.
Airline stocks also moved sharply higher on the day, with the NYSE Arca Airline Index soaring by 2.8 percent. Shares of JetBlue (JBLU) spiked by 12.3 percent after the airline reported an unexpected second quarter profit on better than expected revenues.
Meanwhile, the advance by the Dow comes despite a steep drop by shares of Merck (MRK), with the drug giant plummeting by 9.8 percent.
The sell-off by Merck came after the company reported better than expected second quarter results but provided disappointing full-year earnings guidance.
Shares of Procter & Gamble (PG) also plunged by 4.8 percent after the consumer products giant reported second quarter earnings that beat analyst estimates but weaker than expected revenues.
At the same time, Dow components Travelers (TRV) Goldman Sachs (GS) and JPMorgan (JPM) posted strong gains on the day.
The mixed performance on Wall Street also came as traders looked ahead to the Federal Reserve's monetary policy announcement on Wednesday.
The Fed is widely expected to leave interest rates unchanged, but the accompanying statement could have a significant impact on the outlook for the central bank's next decision in September.
With Fed officials repeatedly saying they need "greater confidence" inflation is slowing before cutting rates, recent inflation data has led to optimism about a September rate cut.
According to CME Group's FedWatch Tool, there is currently an 87.7 percent chance the Fed will lower rates by a quarter point in September and an 11.9 percent chance of a half point rate cut.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Tuesday. Hong Kong's Hang Seng Index tumbled by 1.4 percent and South Korea's Kospi slumped by 1.0 percent, although Japan's Nikkei 225 Index bucked the downtrend and rose by 0.2 percent.
Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.'s FTSE 100 Index dipped by 0.2 percent, the French CAC 40 Index and the German DAX Index climbed by 0.4 percent and 0.5 percent, respectively.
In the bond market, treasuries moved higher over the course of the session, extending a recent advance. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell 3.5 basis points to a four-month closing low of 4.143 percent.
Looking Ahead
While the Fed's monetary policy announcement is likely to be in the spotlight on Wednesday, traders are also likely to keep an eye on ADP's report on private sector employment.
The earnings news from Microsoft and AMD may also drive trading along with results from Boeing (BA), DuPont (DD) and Kraft Heinz (HNZ), which are among the companies due to report their results before the markets open.
OPPORTUNITY TO ACCESS MARK LEIBOVIT'S PROPRIETARY VOLUME REVERSAL INDICATOR - THIS IS THE ONLY PLACE TO DO IT!
https://www.metastock.com/prod
Yes, that's a cartoon of me. Louis Rukeyser had us dressed up in 'elf' costumes on the screen broadcast each week. I've dated myself. That occurred for me between 1988-1996. Lou didn't like any bearish comments, so myself and other elves got dumped in 1996.
WHO am I?
MARK LEIBOVIT is Chief Market Strategist for LEIBOVIT VR NEWSLETTERS a/k/a VRTrader.Com. His technical expertise is in overall market timing and stock selection based upon his proprietary VOLUME REVERSAL (TM) methodology and Annual Forecast Model.
Mark's extensive media television profile includes seven years as a consultant ‘Elf’ on “Louis Rukeyser’s Wall Street Week” television program, and over thirty years as a Market Monitor guest for PBS “The Nightly Business Report”. He also has appeared on Fox Business News, CNBC, BNN (Canada), and Bloomberg, and has been interviewed in Barrons, Business Week, Forbes and The Wall Street Journal and Michael Campbell's MoneyTalks.
In the January 2, 2020 edition of TIMER DIGEST MAGAZINE, Mark Leibovit was ranked the #1 U.S. Stock Market Timer and was previously ranked #1 Intermediate U.S. Market Timer for the ten year period December, 1997 to 2007.
He was a 'Market Maker' on the Chicago Board Options Exchange and the Midwest Options Exchange and then went on to work in the Research department of two Chicago based brokerage firms. Mr. Leibovit now publishes a series of newsletters at www.LeibovitVRNewsletters.com. He became a member of the Market Technicians Association in 1982.
Mr. Leibovit’s specialty is Volume Analysis and his proprietary Leibovit Volume Reversal Indicator is well known for forecasting accurate signals of trend direction and reversals in the equity, metals and futures markets. He has historical experience recognizing, bull and bear markets and signaling alerts prior to market crashes. His indicator is currently available on the Metastock platform.
His comprehensive study on Volume Analysis, The Trader’s Book of Volume published by McGraw-Hill is a definitive guide to volume trading. It is now also published in Chinese. Mark has appeared in speaking engagements and seminars in the U.S. and Canada.
On LFTV Maguire uses Comex price charts to show Fed's interventions at options expiration
In this week's edition of Kinesis Money's "Live from the Vault" program, London metals trader Andrew Maguire shows with Comex price charts how the Federal Reserve has been intervening to knock the gold price down in advance of futures option expiration dates.
Maguire adds that India is not only repatriating gold from the Bank of England but also trying to repatriate gold from the Federal Reserve Bank of New York. The latter move, Maguire says, may cause a big problem insofar as the New York Fed may no longer have the metal on hand and may have to go into the market to get gold for repaying India.
BRICS countries, Maguire says, are eager to acquire gold in anticipation of the launch this year of a gold-backed trading currency.
The program is 49 minutes long and can be viewed at YouTube here:
https://tinyurl.com/bdhaan2e
Good news against the liberal socialist communist media:
https://tinyurl.com/mtxj3pcv
Another Bull Trap in progress!
DANGER DANGER WILL ROBINSON
WHO HAS BEEN CORRECTLY PREDICTING BLACK SWAN TYPE EVENTS?
CAN YOU COUNT THEM ALL? HOW MANY ARE AHEAD? YOU CAN ADD KAMALA HARRIS AS ANOTHER ONE!
La Niña can impact weather around the world. For example, in 2024, NOAA projected a 60% chance that La Niña would develop between June and August, which could increase the chances of a dangerous Atlantic hurricane season.
https://tinyurl.com/msfk2je9
WATCH THE FULL ROSWELL MOVIE PRODUCED IN THE 1990s. The film producer of the film (an old friend) makes a cameo appearance in the film.
https://www.disclose.tv/roswel
Why am I highlighting the Michael Savage book? Unfortunately, it tells the story of the mental illness of the Democratic party and followers of their insane beliefs of our society, our laws and communist underpinnings.
I USE JOEL WALLACH'S SUPPLEMENTS EVERY DAY. MAY AGAIN PROVIDE A LINK TO PURCHASE THEM HERE
COME ON, DAD. IT'S TIME TO EAT
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