Bonds, Bullion, & Big-Tech Fear Bid, Stocks Skid Ahead Of NVDA's Big Day


After Monday's US holiday - to celebrate dead (or nearly dead) presidents? - US markets stumbled to start the week (ahead of NVDA's big earnings announcement after the US close tonight).

That helped drag Nasdaq's 'VIX' up to its highest since early November (but note that S&P 'VIX' remains below last week's highs and Small Caps 'VIX' is at its highest since May 2023)...

Small Caps were the ugliest horse in today's glue factory and the Dow the prettiest - though they all closed red. With about 30 mins left in the cash session, everything wet the bed (for no obvious reason), which dragged the S&P and Nasdaq down further (but that was quickly bid back up)...

And this looks interesting...MAG7 stocks broke down, out of their flag pattern from last week...

Source: Bloomberg

The new key word we all learnt last week - Inflows - is still helping Bitcoin move higher.

Source: Bloomberg

Finally, deja vu all over again, anyone? Nvidia earnings drop at the US close tonight!

This is the same stock that two years ago the S&P energy sector was 5x the size of Nvidia is bigger than all the energy stocks in the S&P 500 combined, helping Tech to now stand at 30% of the S&P 500 while energy has fallen to just 4%.

NVDA is now carrying the Nasdaq on its back (which in turn is carrying the entire market), amid expectations that someday people will spend trillions on AI (maybe... though most likely they won't)...

Did NVDA just go thru the same pre-ordering, panic-bid-esque behavior we saw in 2021 as the COVID lockdowns (supply bottlenecks) and crypto/gaming demand accelerated?

Source: Bloomberg

Happy Wednesday!

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