Next Day Prep: Tech Turmoil The Palantir Shockwave
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Market Briefing: Next Day Prep – What We Are Watching Tomorrow
Intro & Market Mood
Today’s market saw a significant unwind as mega-cap leadership stumbled, led by Palantir (PLTR) which despite strong earnings, faced a sharp sell-off, triggering a cascading effect in the AI space. The tech sector, particularly high-growth stocks, bore the brunt of the selloff, with chip stocks like NVIDIA and AMD taking a hit.
Overnight Headlines
- The semiconductor index (SOX) plunged by four percent, reflecting the risk-off sentiment in the market.
- Apple managed to stay in the green amid the tech sector turmoil on news of a potential cheaper MacBook launch.
Economic Announcements
Financials emerged as a leading sector, with names like Apollo Global Management (APO) surging on strong earnings, signaling a rotation into value and safety amid the broader tech selloff.
Earnings Highlights
Sanmina (SANM) saw a remarkable surge of over sixteen percent following its transformative acquisition of ZT Systems, propelling it into the high-performance computing and AI infrastructure space.
Top Movers
The tape was messy, yet stocks like CACI, Chubb (CB), and HCA demonstrated strength and potential continuation plays into the next trading session.
Quick Trade Ideas
- CACI: Watch for a breakout above 586.40 for potential moves towards 590 and 595, with a stop below 580.
- Chubb (CB): Look for a move above 285.76 as it targets 286.50 and 287.80, with buying opportunities on dips to 285.
- HCA: Monitor for a break of 472.50, aiming for 474-475, with buying zones in the 470s and a stop below 469.
Key Takeaway
Traders should note the market shift towards profit-taking in the tech leaders and rotation into defensive sectors. Monitor stocks with relative strength such as CACI and CB for insights into institutional money flow amid the changing market dynamics. Stay nimble, respect stops, and follow the rotation trend.