ANDIKA BULLETin 6 MAR 2024

The big headlines for today were good (Gold bulls happy as the barbarous relic hit record highs), bad (bitcoin bulls happy then sad as the cryptocurrency broke to record highs and was then clubbed like  baby seal), and ugly (Nasdaq - and MAG7 stocks - suffered their worst day since October).

Overnights 2%-plus tumble in Nasdaq was the worst day for the meg-tech index since October 2023 and makes some wonder if 'positioning is suddenly becoming a problem'. A small late-day bounce put a little lipstick on this pig

Investors also faced a slew of disappointing macro releases which may be weighing on the goldilocks growth sentiment at the margin, with ISM services printing weaker than expected and factory orders plunging...

All the 'Magnificent 7' stocks are trading 2% lower (finding support at the up-trendline)...

As AAPL fell faster than an Apple Vision-Pro off your forehead...

Bitcoin surged up to a new record high this overnight...but then the stops were run and the algos monkey-hammered the cryptocurrency USD$8500 from its highs before some buying returned...

BTC ETFs saw a record volume day (with major volume in BITO)...

So...

And then there's gold...

The spot price of the precious metal rose for the 5th straight day, taking out the prior record spike high on Dec 4th...

Pushing the yellow metal to a new record high...

With silver looking positively dirt cheap here with gold trading at 90x...

Finally, I hand the commentary back to Goldman's Molavi for his take: "A company now worth more than AT&T, Boeing, Coca-cola, Disney, Fedex, Gen motors, IBM, MCdonalds, Nike, Starbucks, UPS and Wallmart.....COMBINED.

A company with 75% margins and 75% market share.

A company that in spite of its rally trades at 33.4x forward PE for the 4th lowest multiple of the Mag 7.

One word of caution, if you plot Nvidia on a chart 2020 to today vs Cisco 1996 to 2002…and then zoom in at the year 2000…you see eerily similar graphs..."

"Cisco then was the belle of the ball and internet was the new new thing. At the moment in time…the prevailing thinking was that the whole internet would run on Cisco routers at 50% gross margins. Until it didn’t. "

But, it's different this time, durr!

Happy Wednesday!

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