Stock AnalysisTop News

Tech Giants Earnings Buoyed Equities

Equity markets mostly recovered from an early swoon this week buoyed by stellar performance from digital tech giants while safety plays got ignored. The Nasdaq 100 closed +4% for the week and up 25% YTD, but the Dow Jones Industrials closed down -.15% for the week and -7% YTD. So much for the Dow being blue chips, maybe we change the label to red chips.

Meanwhile, gold and silver continued their upward trajectories leaving breakaway gaps in their wake……so where is the selloff in precious metals that many pros and pundits are looking for?

Considering that the Gold/SPY ratio is around 1/3 of where it was when gold hit it’s highs in 2011, and gold currently represents less than 1% of the holdings in most portfolios, it seems the fun is just the beginning. Adding more fuel to the fire, the price of Gold and Silver versus the M2 money supply is at record low levels.

This Past Week’s Highlights:

  • Risk Gauges are still in risk-off mode
  • NASDAQ100 (QQQ) roared on good earning from tech giants while weekly momentum in S&P 500 (SPY) improved
  • Market Internals point to bad Breath, & Sentiment Indicators are also showing weakness
  • Grandpa Russell (IWM) tested key moving averages and managed to close above them by Fridays close, but is still down -11% YTD
  • Precious Metals continue their run with no end in sight
  • Soft Commodities (DBA) look to have broken out of a 5-month base and a descending weekly channel
  • US Bonds are quietly gathering steam for a blow-out rally

There are two worlds with opposing realities. One is a world of companies that prosper during the current chaos and the accelerated shift to a digital economy and another world that falters with companies that do not adapt……. and both are very real.

Tech Giants Earnings Buoyed Equities

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.

Related Articles

Back to top button
Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!