Note: TMTB will on vacation from July 1st through July 18th. Tomorrow will be the last post until then. Details here.
Good afternoon. QQQs flat as software/internet continue to get a bid at the expense of semis. Jefferies pointed out today that IGV/SMH is +11% over the past 6 days which is a 3.5 sigma move and have set an all time for 6 day performance:
Some of the flows away from AI semis and NVDA have benefitted sw and internet names, which has helped names like AMZN hit 52wk highs. The name of the game over the past couple years has always been to fade extreme negative sentiment and we saw that play again with software this month. QQQs are only 1% off highs despite NVDA 12% off its highs and a MU miss - many wouldn’t have expected that, but here we are heading into a seasonally stronger July with the best breadth all year… Per BAML, on Trailing 5-Day Basis, 70% of 199 TMT stocks are outperforming the SPY while that range has spent most of ‘24 in 30-50% range.
Let’s get to the recap…
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