The program traders are either making a fortune or losing one
A lotta lead changes in the market today.
NVDA +14.92 at the close.
Oppenheimer’s Rick Schafer maintains a Perform rating on Nvidia’s stock with no assigned price target.
Nvidia came into its Q4 earnings report with a “high bar,” and the company cleared it, Schafer said in a note. Sales of $2.91 billion and an EPS figure of $1.69 both came in “easily ahead” of the Street’s projection of $2.68 billion and $1.16 per share, the analyst said. Revenue from the data center, gaming, pro-visualization and OEM segments each came in at least 5 percent ahead of the consensus.
It was the seventh consecutive quarter where Nvidia more than doubled data center revenue, reaffirming the “significant market size and opportunity” the company has in artificial intelligence given its virtual monopoly in data center accelerators., Schafer said. The company’s V100 product boasts clients from some of the largest international companies, and continued adoption will drive average selling price and margin growth, he said.
Despite Nvidia’s impressive 41-percent revenue growth rate in the quarter, the stock is trading at a multiple north of 30x the analyst’s 2019 estimates, which implies a “balanced” risk-reward profile, the analyst said.
When the market was going up, the media attributed it to an extension of the Obama economy. When there was a downward correction, it suddenly was described as an end to “the Trump market.” The media are nothing if not predictable.
I took a bit off the table at the open today to get to an allocation of about 60/40.
I see today the Dow bounced off the 200 day average which is a good sign but I want to see that level tested a bit more before I move back to 80/20.
The Leftist Media Complex is dying to tank the economy.
Yesterday’s thread of about 183 posts was great...no change from our discussion...nothing has changed.
I think most of the elevation near the close was the bigger players buying back their shorts.
Maybe not, but a considerable amount of damage has been done to the charts this week. It will be awhile before we see 26,000 again, methinks.
At the market’s lowest point this past week I checked my portfolio. I lost a lot of money. But you know what? My portfolio was still up by 10.57% overall since July 2017.
So a little market context is helpful.
I want the market to go down another 15%. There are some really inexpensive stocks that are just begging to be bought at the right price. I read on this thread earlier about how they lived through the market corrections in the 80’s. I made best friends with my father in law and my dad when Hillary tried to take over the pharmaceutical industries when Bill was getting BJs and pretending to run things.
If you all remember that all the drug stocks, biotech stocks, health insurance stocks tanked. It was epic. All I have to say that Johnson and Johnson along with Amgen brought a smile to my father in law’s face. I just figured that we would still need baby powder, Tylenol, medicine that is cheap to make and prevents you from needing blood transfusions and helps your body fight infection.
“The market” might be expensive but there are companies that are still undervalued. Remember how everyone made fun of Buffet for buying rail company stocks a couple of years ago. Look at what his rail holding have done.
Investment is all about emotions and knowing your ability to trust your instincts. People even dump out of mutual funds and ETFs which are designed to mitigate risk and avoid emotional trading....at the bottom when it’s the cheapest as opposed to dollar cost averaging and letting the beauty of compounding interest help them.
So basically this was all about the fear of shutdown and program trading.
After listening to Rush today, and his theory the Fed is conspiring to cause the market to tank, I am asking, who is Powell, and is he a homicide conservative or like justice Kennedy and Souter, a squishy plant by the Left???
Who is Powell, really???
I’m curious about how all this affects CALPERS and other government retirement.
Many years ago, I watched a documentary where the CALPERS people were all giddy about how much money they were making in the stock market and how they were going to force liberal policies on the companies whose stock they purchased.
It seems like they were barely limping along in a great market.
I wonder how many Democrats lost to the Democrat shorts? A circle of misery, they are. ;-)