Monday Market Open

Dear Reader,

Another week, another MMO. What a day to be alive.

Tech stocks fucking dived last week after years of insane growth, what can we learn from this?

Along with all the rallies, dips come too. It’s just life.

So, don’t be upset if you’re going through a dip, just make sure you work on having an upswing and I’ll see you at the top brother.

Listen, I’m not here to feed you motivational crap, but I just thought you should know.

So, have a good week and do what you can to start your upswing now.

Enjoy the Alpha,

Market Indices & Commodities

(As of Sunday Eve)

What happened?
The Recap Of The Week

• Bitcoin halving happened but the price has remained stable 💵

• Trump’s latest trial started, and he’s so stressed he fell asleep 😴

• Tesla stock has a poor week (down 17% last week) 📉

• Tech stocks have a shocker 😬

Graph of the Day
Some Of Magnificent 7 Progress So Far In 2024

News
What on the Horizon?

• Monday - Verizon and SAP corporate earnings.

• Tuesday - UPS, Pepsico, Lockheed Martin, Spotify, Tesla and Visa corporate earnings.

• Wednesday - Boeing, AT&T, Meta, Ford and Chipotle corporate earnings.

• Thursday - Royal Caribbean Group, American Airlines, Caterpillar, AstraZeneca, Intel, Microsoft & Snap corporate earnings.

• Friday - Chevron and ExxonMobil corporate earnings.

🧑‍💻 It’s a massive week of earnings for telecom and tech companies alike. Above are the companies to watch.

The Secret Sauce
What’s Going On With Tech Stocks Right Now?

Major tech stocks dipped hard last week.

Big names were affected like $SMCI, $META and $NVDA.

Major tech stocks have all dipped massively in the last week.

This is the biggest dip we have seen for tech stocks since 2020, and is certainly not what we are used to, given the insane run some of these companies have had in the last couple of years or so.

📉 So, what caused this?

There are a number of reasons.

1. Tensions in the Middle East.

2. Concerns over the outlook for interest rates.

The Iranian attack on Israel speaks for itself, but interest rates are more interesting here.

There is widespread concern that interest rates will stay high for longer than expected. This is disappointing for investors, as the Fed signalled earlier in the year that up to 3 rate cuts this year were possible.

So why does this hurt tech stocks?

As interest rates are looking unlikely to offer much help in the coming months, companies now face even more pressure to deliver strong growth in profits.

Tech stocks are particularly affected because they are so overvalued right now, and people are starting to lose confidence in whether these tech stocks will be able to live up to peoples’ stupid high expectations.

What does this mean for the future?

A lot of these companies have earnings this week. Meta, Microsoft and Tesla for example. It will be interesting to see the earnings, and how the markets react to them.

What do I think? I think the earnings themselves will be fine, but I think the earnings are going to have to be, quite frankly, fucking amazing for the share prices of the tech stocks mentioned above to go back to where they were a couple of weeks ago. But don’t listen to me, I couldn’t read until I was 12.

Thank you  
That’s all Folks

Hey, thank you for checking out Monday Market Open. Remember, dips are a part of life. Just make sure you always rebound and find your peak.

Cheers fellas,