Market On Open - Thursday 18 April
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Let The Chips Fall As They May
by Alex King
ASML underwhelmed yesterday before the open; TSMC today before the open beat and then raised its Q2 revenue guide. It wasn’t a huge beat or a huge raise and the stock isn’t up much. Semiconductor has led the way in late 2023 and early 2024. If it falters, some other sectors have to pick up the slack if market indices are to keep rising; but what those other sectors can be - enough to support markets - is limited, really, to software. Energy, healthcare, anything else - there’s not enough of that in the S&P500 or Nasdaq or even the Dow to keep the indices moving up even if $XOM or whatnot moon; I give you 2022 as the evidence for that. So it falls to Microsoft to lead. If Microsoft earnings disappoint, we can look forward to a move down in the indices at large and the tech sector in particular. In short, it’s time to get focused and nimble on sector ETFs. We’ll take a look at sector rotation opportunities later this week for our paying members.
Before then, let’s refresh our equity index, sector ETF, oil and bond charts.
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