Tech records, oil, Nvidia’s future: Market Takeaways

Tech sector funds have seen record inflows this week, according to Bank of America’s Investment Strategy and EPFR, while crude oil prices (BZ=F, CL=F) are on the rise. In addition, Nvidia (NVDA) shares were bogged down in Friday’s session following a sell-off on Thursday. What is in the chip giant’s future, and can its stock price manage to bounce back?

Yahoo Finance’s Jared Blikre walks through the latest market trends for Friday, June 21.

For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend.

This post was written by Nicholas Jacobino

Video Transcript

The major indices ending the way little changed as tech stocks remain in the spotlight.

Finances Jar is here with more of his trading day takeaways, and we start with record Tech close, which is so interesting to me because you wouldn’t not by the price action this week.

No.

And it’s sometimes you see a bunch of flows, but you know the price.

You might see a lot of selling kind of disguised in there, and this is the highest volume day of the year, or it should be.

Right now, I haven’t calculated the the final to, But if you wanted to sell a lot of tech and guess what Apple was sold to a tune of $10 billion a day to make room for NVIDIA and XL K. Well, this would be the week to do it.

Now the reporting is from the last five days, so I believe that stretches back to last week.

But here is that Spike.

Uh, this goes back all the way to what, 2016, 2017.

And this is $8.7 billion.

Michael Hartnett’s team that tracks these flows is calling it a I cap that implies an ending of some sort.

But, you know, the topping is a process.

So one thing I’m interested in is the fact that seasonality and I showed this the other day with Josh.

Uh, seasonality favours the bulls the 1st 10 days of July, and that’s just market wide.

But I’m thinking if you’re looking for a summer lull, you might look for it after that July, I was gonna say, too again.

Capitulation implies different prices that we’ve been seeing, you know?

But I think capitulation can mean different things you can see like at the bottom of a bear market.

You’ll see a stock do this.

It just plunges right, and then it rebounds.

That’s a capitulation of a different sort, but you can have an exhaustion.

I think of buying that ends in capitulation with a kind of, you know, an uptick.

Even interesting.

OK, let’s also talk about commodities.

Shall we WT crude punches above $80 a barrel.

So let’s let’s bring up a chart here.

This is going to be WT I crude futures year to date, and here’s the pattern that I’m interested in.

Story continues

This is the $80 price level we’re spending some time below that punched above.

Now we’ve come down.

The next logical move is take off, but you need a catalyst.

So what could be a catalyst?

Well, we were just talking to a guest earlier hurricane season, right around the corner, OPEC Plus Not likely to move the needle, but they could.

Biden could try to pull a lever in the election year.

These things happen, but I think hurricane risk is actually probably underappreciated right now.

Positioning in the oil market is very low, so that just means the potential to go higher is there.

Finally, we have XL E, and I’ll put a line chart here.

Multi decade highs and you can see this high kind of in line with this high kind of in line with this high takes a while to put these 16 year patterns in play.

But my question, uh, my question for the viewers is what happens if we punch above here?

But I’ll show you another chart.

Here’s WT I Crude futures energy can be very range bound because the stock price a lot of those gains are returned to the shareholder in the form of dividends and also buy backs.

Interesting.

Well, not good news for drivers, perhaps potentially this summer, but we’ll see about that.

And then finally we talk about we gotta I mean, it’s gotta be NVIDIA is.

Does NVIDIA Do we are we like, as Josh likes to joke, we are contractually obligated to speak about a video on the show.

We’re not really, but it seems to go that way.

Yes.

All right.

So let me bring up NVIDIA here.

I guess this is gonna be a Max chart.

That is That is a parabola if I’ve ever seen one.

But I want to focus on the price action here.

A lot of attention is on this candle.

That’s from yesterday.

That was a big red candle.

What did you call it earlier?

Bearish.

Engulfing Because it engulfs the entire body of the previous candle.

Hard to see there.

It’s really small.

Plus, uh, I over drew over it, but it reminds me of this price action right here.

That was in March.

This was a record high.

We got that big red candle, and then we kind of backed and filled for a few months.

So if you’re a big NVIDIA fan at the very least.

Maybe this sets up a potential buying opportunity.

Not right now, necessarily.

But, you know, in the coming weeks, I would also add that with options expiration today uh, half of the gamma.

That’s a very wonky term rolled off.

But the net effect for people for investors next week is that NVIDIA is gonna trade more freely.

Uh, when you have high gamma, that just kind of mutes the volatility.

There is a trend to the upside, but we’ll see things differently next week.

And we’ll talk about NVIDIA again.

You bet.

Thanks a lot, Jared.