5/26/23 The Only Arms Dealer in The War


Wall Street was focused exclusively on Nvidia (NVDA) stock on Thursday. After reporting quarterly earnings, the stock added 24% and more than $183 billion in market cap.

Image from Reuters
  • The chip maker that is powering the AI war is seeing record sales and record growth
  • Nvidia is now the 6th most valuable company by market cap
  • Yesterday’s price surge was the 3rd largest single-day market cap gain in stock market history
    • Amazon (AMZN) and Apple (AAPL) hold the number 1 and 2 spots, respectively

The indexes with exposure to the stock rose. Those without fell…

  • Dow Jones -0.1%
  • Nasdaq +1.7% 
  • S&P 500 +0.9%
  • Russell 2000 -0.7%

Sector Round Up

3 of 11 sectors end Thursday higher.

The winners…

  • Technology (XLK) +3.8% – NVDA stock lives here
  • Industrials (XLI) +0.3%
  • Real Estate (XLRE) +0.2%

At the bottom…

  • Healthcare (XLV) -1.0%
  • Utilities (XLU) -1.3%
  • Energy (XLE) -1.8%

Recalling The Recession

Recession fears are losing ground…

On Thursday morning, the Bureau of Economic Statistics boosted its GDP growth estimate from +1.1% to +1.3% for Q1 of this year.

Consumer spending drove the growth…

Chart sourced on bea.gov

As long as consumers are spending and the economy is growing, there won’t be a recession.


The Technology sector is the hottest sector on Wall Street right now…

XLK Weekly Candles – Chart by thinkorswim

The sector was moving higher ahead of Nvidia’s blow-out earnings.

And is now poised to smash through a critical long-term resistance level and make new all-time highs.

The Technology sector is our favorite sector as we head into summer.

The daily read…


This morning at 8:30, the latest inflation report drops. This time it’s the Fed-preferred measure, Personal Consumption Expenditures, PCE for short.

After the closing bell, markets will take part in the three-day holiday weekend.

Markets will reopen on Tuesday for the final two trading days of May.

Enjoy your holiday.


*Low Float
^Open Position

*SDA on watch
*AMAM support at $14
*WTER support at $2
TAST support at $5.50
ALPN support at $10
NNOX support at $16, resistance at $20
ONCY support at $2
APLD support at $7
URBN support at $30
^PLAB support at $20

Secondary watchlist—float 100+ million

EVLV support at $5.50
ZUO support at $10
support at $17
XERS support at $2.80, resistance at $3
RIOT resistance at $12
MVIS support at $3
^IONQ support at $9
VRT support at $18
PLTR support at $11/$12

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