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VRA Investing Podcast: Turnaround Tuesday, Market Resilience, and Tech Earnings Reaction – Tyler Herriage – February 06, 2024

In today's episode, we recap the market's turnaround Tuesday, highlighting the positive turn for our major indexes and the market internals. We also cover the reactions to the latest earnings reports from tech companies like Spoti ...

Posted On February 06, 2024Episode 1320
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About This Episode

In today's episode, we recap the market's turnaround Tuesday, highlighting the positive turn for our major indexes and the market internals. We also cover the reactions to the latest earnings reports from tech companies like Spotify, Snapchat, and Palantir. Tune into today's podcast to see what the VRA Investing System is telling us going forward.

Transcript

Don’t look back because the market is closed. Good Tuesday afternoon, everyone. Tyler Herriage here with you for today’s VRA investing podcast. Hope you all had a great day out there today. If you’re watching the markets, it was a little bit better of a day than yesterday. We got a bit of a turnaround Tuesday today as our major indexes managed to finish higher across the board here today. Maybe not by a lot, but hey, we’ll take it. And some good reactions to earnings out there today.

Some big moves out there that we’ll cover today. But first, let’s start off with today’s earnings, as this morning we had a couple more tech names reporting, Spotify reporting good earnings. Well, the reaction was really good today. The stock was up over just shy of 4% on the day today. We got a few more after the close. Ford is up and after hours. Chipotle up and after hours as well. Then we got Snapchat, which is really the main tech company, reporting after the close today, which missed on revenue here.

[00:01:13]:
And investors did not like what their report had to say. Snap is now down over 30% in after hours trading. So not a good day here. And really, while this is not a small company, the current valuation is $28 billion. So certainly not a small company, but it’s also not tech leadership. So no concerns for us here, no love loss for this stock. Absolutely not. But the main point of the week so far on earnings continues to be what happened with Palantir yesterday after the close, reporting on earnings and investors loving it here.

The stock was up a massive 30% on the day to day on its largest trading day by volume in the company’s history. Actually going back to the day that it ipoed, finally broke above those levels there. And the real news here is the massive growth that Palantir is seeing. For example, us commercial business grew 70%. And now the next step looking forward for the company, is a full sp 500 listing. We do remain very bullish on the stock here. So this is a little bit of inside baseball for you here, if you’re not a VRA member, because this is one of our VRA ten baggers here. So we do remain very bullish on the stock from here, as it looks to be having a breakout, continuing its uptrend here, making a 52 week high here today.

The all time high. Let’s see here. Let’s just pull it up. So today, the stock trading up to $21. Dan Ives out. Kip talked about this yesterday, though. We do like watching Dan Ives here he was out with a projection today of the stock going. His price target is 30.

[00:03:10]:
The all time high in the stock was shortly after the IPO at 45. So we’ll look for 30 as the next stop along the way. Back to those all time highs here for Palantir. We do think it has that kind of potential for this name, but stay tuned this week, we still have a lot of exciting earnings to go. While we have gotten past all of the mega cap names for earnings, there are still some big names coming tomorrow. We’ve got Uber and PayPal and some more tech names coming up later in the week as well. So stay tuned. We’ll be reporting on some of those here as well.

So taking a look at our market action on the day here today, as I mentioned earlier, we did finish higher across the board for our major indexes today. Maybe not huge gains here, but still good to see after the start to the week that we had yesterday. And remember, we are still hanging out near 52 week highs in all time highs for stocks here. The Nasdaq, I believe that’s a 52 week closing high that we got today. And we saw a lot of tech names earlier in the session especially, we had Navidea down some three, 4%, finished down 1.6% on the day after hitting an all time high, nearly getting above 700 during the trading today. Today. But when you see big tech names like that finishing lower and then Asda is still managing to pull out a gain here, we’ll take that as a win. And what we really like to see is we would say this is some serious resilience here from our major indexes yesterday.

We saw it as well. While we did finish lower, our major indexes finished close to their highs of the day. We saw similar action here today. While these weren’t huge gains, we did finish close to the highs of the day today, which is exactly what you want to see. And we can’t forget that we are now out of extreme overbought territory, but we’re still not far away from that either. So something we’ll be keeping an eye on here. But for our major indexes today, the Russell 2000 led the way up over eight tenths of 1% to 1953. After that, the Dow Jones up zero point 37% to 38,521, again not far away from an all time high there.

[00:05:42]:
After that, the S and P 500 also very close to its 52 week high as well, up just over two tenths of 1% to 4954. And lastly, the Nasdaq was our laggard on the day still managed to finish positive, up zero 7% to 15,609. One other area I do want to point out along with the Dow Jones was the transports up a big 2% on the day today. This is a group we want to see continue to participate from here. Now, I know I’m jumping around a little bit, but back to tech, the semis did finish lower on the day today. Remember, we just saw close to an all time closing high yesterday, and the semis did finish down 1.1%. But as I mentioned earlier, on a day where the largest holding, Nvidia, was down from between three and 4% earlier in the session, finished down over 1%. And three out of the four largest holdings, Nvidia being one of those, were down between one and a half and 3% on the day today.

That is some resilience from the semis overall, although I’ll point out here, Taiwan semi did hit another 52 week high here today. So again, to recap here, certainly not a bad day. Decent turnaround Tuesday here for our markets. But what really got us excited about today’s action was the internals. After back to back days here with weak internals. Friday we got weak internals, and yesterday we got weak internals. We finally got some strength today. It’s exactly what you want to see is we got positive internals in the Nasdaq on a day where we were essentially flat.

Right? So we’ll take that as a win here. So let’s take a look. Advancing stocks beating out declining stocks over two to one positive on the NYSE today. Good day. Just barely shy of two to one positive on the Nasdaq as well. And again, after those back to back weekdays of internals, this is what you want to see. 52 week highs to lows also came in positive on the NYSE, over two to one positive there. We were slightly negative on the Nasdaq here, but we talk about this here often, the Nasdaq, there are so many unloved names in there, these smaller tech companies.

[00:08:14]:
Also, when you get a little bit of a sell off, this is a lagging indicator. So you’re going to have some stocks hitting 52 week lows. So no real concerns there from that indicator. But volume coming in nicely positive today after yesterday’s big downside volume day on the NYSE. I believe we finished with roughly 85% downside volume yesterday. You really want to see a nice comeback. And we got that today coming in over three to one positive on the NYSE. If I’m not mistaken, it was about 75% upside volume on the day, so not quite as big as yesterday was down.

But hey, we’ll take that as a win here today as well. Also, the Nasdaq coming in over two to one positive on volume as well. So good day today and good to see after those back to back days of weak internals. Next up, looking at our sectors on the day today, we finished with nine out of our eleven s and P 500 sectors higher on the day. If you only heard that, you might have thought our major indexes were up a little bit more on the day. But we were led by materials, followed by real estate, and then healthcare, which hit an all time high today. After that, industrials also an all time closing high today as well. So still good to see we’re getting more and more 52 week highs and all time highs here.

As we say here very often lately, new highs beget new highs. Then our laggards on the day. As you might expect, tech, the tech sector was our laggard on the day, followed by communication services, which is essentially a proxy for tech, mostly made up of tech names, as meta makes up a large part of that sector and it’s pulling back some after its massive, massive update on Friday. Not surprising to see a little bit of consolidation after that huge move that it did have. So again here, no real concerns for the sector or for meta for that matter. All right, finally here for today, our VRA commodity watch. Gold now up just under half a percent to $2,052 an ounce. Silver up just under four tenths of 1% to $22.51 an ounce.

[00:10:40]:
Copper now up just over three tenths of 1% to $3.78 a pound. And oil really has been in a sideways range for some time here, similar to energy stocks over the medium to long term. We do remain very bullish on this group, but it’s just been stuck in this sideways trading range for some time. Oil up just under 1% to 37 dollarsforty seven cents a barrel. And finally here for today, bitcoin now up 1.8% to 43,157. This is another group here that we do remain bullish on long term. It’s come a long way from where it was just a year ago. Just to give you a rough estimate of where we at where we’re at from less than a year ago, we are up 95%.

Bitcoin is up 95%. That’s a huge move for the group, one that we do expect to continue, but to see a little consolidation in the near term after those etfs were launched is not surprising. The next big event that we’ve talked a lot about here is the having that should take place sometime in April of this year. I covered this on a previous podcast, but if you look at the last two havings, which take place roughly every four years, so the last one was in 2020, you can expect to see massive moves, one leading up to that event, and then follow through after as well. It hasn’t been a big buy the rumor, sell the news kind of event if you like, holding it, maybe sold off a little bit. I had to go back and look at the charts again, but what you can expect after that event is usually very good for bitcoin. And for those of you who haven’t tuned in to some of our previous podcasts, the having is, in the simplest terms possible, is that the rate at which bitcoin are being mined gets cut in half. So from the previous having, it went from roughly twelve bitcoin that you get for every block mined, then it got cut in half to six.

Now it’ll be cut in half again to three. Remember, there’s only 21 million bitcoin that will ever be in existence. So this helps slow down the mining process. At this pace. If we continue, the full 21 million will not be mined until 21 40. So still quite a bit of time there and a lot more havings to come for bitcoin, but it is a group that we do remain bullish on here for the medium to long term as well. Folks, that is all that we have time for here today. Please be sure to subscribe to receive our VRA podcast every day at the market close.

[00:13:31]:
You can sign up@vraletter.com check out our transcripts as well while you’re there and everything that we have to offer right now. We’ve also got our 14 day free trial to see everything that the VRA has to offer. That includes our portfolio, our special reports, and all of our daily updates as well. I need no reminder for our existing members, but we had a pretty good year last year returning over 50% in our portfolio. So come and join us. We’d love to have you with us. We’ve got a great group here with us here at the VRA and we’d love to have you be a part of it as well. So thanks again for tuning in.

Until next time, we’ll see you back here tomorrow for the close.

Podcast Newsletter

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Time Stamps

00:00 Palantir stock surges 30% on record trading.
05:42 Stock market indices surge, semiconductors lag.
08:55 Stock market closes high; positive sectors.
11:37 Bitcoin up 95%, expects consolidation after etfs.
14:11 See you tomorrow for the conclusion.

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