$PLTR Chart done on daily timeframe. The stars aligned for Palantir in 2023 as the hype around artificial intelligence companies grew and helped the stock push. This is the case for many companies that are involved in artificial intelligence, even the ones that aren’t performing well fundamentally. Palantir’s fundamentals aren’t terrible, but it’s certainly considered overvalued at 34B; however this doesn’t mean it will come down. During bull market cycles where greed is growing, even the most overvalued companies can rally on for months and years before seeing a correction. The company’s revenue is barely reaching 2B, but it’s growing at a decent rate year over year, they’ll need to upkeep that growth to maintain that 34B valuation. I’d like...
$PG Chart done on 30 minute timeframe. Although considered a foundational name long term, Proctor & Gamble may see some headwinds in the short term as inflation begins to fall. For multiple quarters now, companies in the household goods industry along with others in the consumer defensive sector have beat their revenue quarter over quarter by raising prices on their customers, but with the easing inflation rates and a more careful consumer, companies will struggle to maintain higher prices and margins. Generally speaking, PG is not known as a growth stock, it is largely owned for its dividend. Similar to names like KO and PEP, these stocks float around the same large range for years before seeing a significant move...
SPY Chart done on five minute candles. The market volatility index (VIX) spiked nearly 60% in recent trading as fears of an economic collapse continued to take their toll on stocks. In the last two weeks we’ve seen several bank failures and liquidity crunches across the globe, putting more pressure on the inflation ridden economy. Last Friday’s Consumer Sentiment Report showed a decline for the first time in fourth months, signaling that consumers are losing confidence and are likely to decrease spending. There are pros and cons to a decline in consumer spending. Less spending means less demand, which will help tame inflation at a quicker rate. But less spending also means a decrease in revenue for many companies, which...
MSFT Chart done on hourly timeframe. Microsoft shares closed higher today after getting a boost from the recent GPT4 rollout. The company’s large stake in OpenAI has allowed them to power their Bing search engine with the latest artificial intelligence technology and has made use of their cloud computing infrastructure, Azure. Shares of Microsoft have been rallying for three days, despite the overall market turmoil and fears. Looking at its hourly chart over the last ten days, we see that the stock has moved above the 260.00 resistance, which makes that the most critical support going forward. The stock’s short term chart does look a bit overextended, so a consolidation period may be due; the consolidation range is 260.00-266.75, above...
SPY Charts done on five minute and daily candles. Stocks got rocked last week after the collapse of Silicone Valley Bank, the 16th largest bank in the United States. Silvergate Capital was also forced to close down its banking division just prior to SVB last week. The fall of these two banks sent shockwaves that had a sense of déjà vu, many remembering the Washington Mutual downfall from 2008. The pains these giant institutions are seeing come from the monetary tightening cycle our economy is going through. Historically every time The Federal Reserve raises rates, that’s when those who are over-leveraged or lack liquidity fall victims to the shifting policy. The magnitude of this downfall is likely only starting to...
