Quad Witching Driving AI Stocks Including Nvidia Higher, More One Month Lows Than Highs In NASDAQ
Portfolio Pulse from The Arora Report
Quadruple witching is driving AI stocks, including Nvidia, higher despite deteriorating internals in the Nasdaq 100. The market shows signs of being overextended and overbought, with low volume indicating a lack of conviction. Noteworthy news includes a potential Apple source code breach and Dell's involvement in xAI's supercomputer. Housing data is weaker than expected, and the Bank of England has held rates steady. Early trade shows positive money flows in Meta and Nvidia, while Apple sees negative flows.
June 20, 2024 | 3:07 pm
News sentiment analysis
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POSITIVE IMPACT
Dell is assembling half of the racks for xAI's supercomputer, which could boost its profile in the AI sector.
Dell's involvement in assembling racks for xAI's supercomputer could enhance its reputation and opportunities in the AI sector.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Positive money flows in Meta Platforms indicate investor confidence in early trade.
Positive money flows in early trade suggest that investors are confident in Meta Platforms' prospects.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Nvidia is being driven higher by quadruple witching and a gamma squeeze, despite broader market concerns.
Nvidia is benefiting from market mechanics like quadruple witching and a gamma squeeze, which are driving its stock higher despite concerns about the broader market's overbought condition.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Positive money flows in SPDR S&P 500 ETF Trust indicate investor confidence in early trade.
Positive money flows in early trade suggest that investors are confident in the broader market as represented by SPY.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Hackers claim to have breached Apple's source code, which could damage its reputation. Early trade shows negative money flows.
A potential breach of Apple's source code could harm its reputation for security. Negative money flows in early trade suggest investor concern.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 100
NEGATIVE IMPACT
The Nasdaq 100 ETF (QQQ) is overextended and overbought, with low volume indicating a lack of conviction. Quadruple witching is driving volatility.
The Nasdaq 100 ETF is showing signs of being overextended and overbought, which typically precedes a pullback. Low volume indicates a lack of conviction, and quadruple witching is likely to add to volatility.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100