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11/30/23 Tech to the Moon

News:

Markets continued their sideways trend on Wednesday.

New data revealed that Q3 GDP gained more than initially estimated. The advance estimate put annualized growth at 4.9%. Yesterday’s release raised it to 5.2%

Chart from BEA

Markets showed little reaction to the news. 

The indexes opened green and faded into the close…

  • Dow Jones +0.0%
  • Nasdaq -0.2%
  • S&P 500 -0.1%
  • Russell 2000 +0.6%

Sector Round Up

The sectors failed to produce gains (or losses) of more than 1% for the sixth day in a row. 

6 of the 11 sectors closed Wednesday’s session higher.

At the top…

  • Real Estate (XLRE) +0.8%
  • Financials (XLF) +0.7%
  • Materials (XLB) +0.5%

At the bottom…

  • Energy (XLE) -0.7%
  • Utilities (XLU) -0.8%
  • Consumer Staples (XLP) -0.8%

Tech Take Off

As “smaller” tech companies report earnings, some of their shares are making outsize gains. Here are a few of the names and trends to watch…

Image from starlust

Shares of cloud service provider NetApp (NTAP) soared 15% on upbeat guidance led by AI applications.

  • The CEO said it’s turning “disruption into opportunity”
  • The gains added $2.4 billion in market cap

Cyber-security firm CrowdStrike (CRWD) popped 10% on strong demand and growing forecasts.

  • High-profile breaches are driving larger investments in threat prevention
  • Buyers added $4.9 billion to the company’s market cap

HR software company Workday (WDAY) gained 11% on its earnings beat and raised guidance.

  • The CEO credited “our AI innovation” for the growing demand
  • The pop in share price represents $5.3 billion in new market cap

Technicals: 

The trend for fear remains low.

VIX Daily Candles – Chart from thinkorswim

Sure, the VIX has breached the bullish channel marked on the chart above. But it hasn’t maintained any significant amount of fear for more than a few weeks.

As long as the VIX remains low, the market is clear to move higher.

Your latest readout…

Timing:

This morning at 8:30 AM, the Fed-preferred measure of inflation will drop in the form of the CPE report.

The last four reports showed price increases near 3.4%.

Bulls could go wild if the figure comes in below 3%. As always, the market’s reaction is more important than the data itself.

Watchlist:

*Low Float
^Open Position

*DRCT support at $10, resistance at $12.50
*GYRE on watch
*SHOT support at $4, resistance at $5
*EJH support at $4.50, resistance at $5
*MYO support at $3.20, resistance at $3.50
HRTG support at $8

Secondary watchlist—float about 100 million

NMRK support at $8
GPS on watch
AFRM on watch
SID support at $3.20

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