Rise of the Trillionaire Companies: Take Advantage of Their Market Dominance












January 19, 2024


If you choose to no longer receive our free newsletter and daily market updates, click here to UNSUBSCRIBE. 


Today’s Newsletter is Sponsored By Weiss Ratings



Weiss Ratings founder Martin Weiss names the hidden gems of a crypto sector that has grown 100-fold since 2020 and could grow another 400-fold in the months ahead. Plus, he gives you access to an early-bird, backdoor method for buying the gems of this sector for 80%, 90%, even 99% less than other investors will probably pay.

 

Click here for Dr. Weiss’s just-released video with all the details.


 

Trendsters, assemble!

 

Ready to dive into the market mayhem where trillion-dollar titans vie for dominance? Get ready, because today’s Traders on Trend is a power-packed cocktail of insights and juicy tidbits guaranteed to shake things up.

 

We’re cracking open the code on how these mega-companies cast a money-magnetizing spell on the market. Think David and Goliath – but where Goliath has a trillion-dollar budget and laser beams. We’ll show you how to navigate this new reality, not just survive it, but thrive alongside these giants.

 

Speaking of giants, keep your eyes peeled for our Chart of the Day, where we dissect Uber’s epic climb towards uncharted territory. Will it breach the stratosphere or face a gravity check? This is a high-flying analysis you won’t want to miss.

 

And that’s just the tip of the iceberg! From market-moving news hotter than a dragon’s breath to quirky nuggets of financial wisdom, we’ve got you covered. Let’s get this show on the road!

 


Today’s Market Mood: EXTREMELY BULLISH!

The Bear-Bull Meter


 

Daily Market Roundup: Tech Titans Prop Up a Shaky Wall Street

The bulls finally broke their losing streak, charging back onto Wall Street today propelled by a potent brew of tech strength and megacap momentum. The Nasdaq Composite (COMP) made a show of force, reclaiming the year’s highest levels as Apple (AAPL) basked in the glow of an analyst upgrade. Taiwan Semiconductor Manufacturing (TSM) flexed its muscles, reporting stellar earnings and boosting the entire semiconductor sector to a two-year high.

 

But beneath the surface, whispers of caution swirled. While megacaps like Apple played the role of market rah rahs, the broader market remained curiously subdued. Declining stocks outnumbered gainers in both the Nasdaq and S&P 500, painting a picture of selective strength rather than widespread enthusiasm. Mega caps are doing the heavy lifting today, but below the surface, we’re starting to see some cracks.

 

Treasury yields went higher, adding fuel to speculation that rate cuts won’t materialize until later this year. This, coupled with the market’s internal tremors, suggests a potential bumpy road ahead. Wall Street may be dancing today, but it’s a cautious two-step, with investors keeping a wary eye on the cracks in the foundation.

 

Surviving the Tech-Fueled Maze:

  • Stay diversified: Don’t get seduced by the siren song of megacaps alone. Spread your bets across sectors and market caps to weather potential tech turbulence.
  • Monitor the “breadth”: Keep an eye on the ratio of advancing to declining stocks. A widening gap between the two raises red flags.
  • Be mindful of rates: Rising yields could put pressure on valuations, particularly for growth stocks. Consider defensive plays alongside your tech exposure.
  • Embrace volatility: The VIX index may be falling, but don’t let your guard down. Brace for potential bumps and be prepared to adjust your positions if needed.

Remember, Wall Street is a fickle beast. While the tech titans might be leading the charge today, don’t forget the importance of a balanced portfolio and a healthy dose of skepticism.

 

 
 


Sponsored By Weiss Ratings

Bill Gates was ahead of the curve on tech for decades.

 

He drove the personal computer revolution of the 1980s.

 

He predicted the rise of smartphones, social media and streaming video in the mid-1990s.

And now he says artificial intelligence is “as fundamental as the computer chip, the internet and the PC.”

 

This is why, ten years ago, I hired one of Bill Gates’ former in-house experts, Jon Markman.

This is why Markman has dedicated his long career to developing algorithms for picking the best stocks. First he helped do it for Microsoft when Bill Gates was CEO. Now, he’s helped do it for me.

 

And this also helps explain why our “Buy” ratings for AI stocks have worked so well, giving investors the opportunity for gains of …

 

810% on ASML

3,146% on Lam Research

5,466% on Ansys, and

9,624% on Nvidia, and …

Many more.

 

The big news: The same ratings algorithm that helped pick these AI winners has now identified another AI stock as a “Buy.”

 

It’s Jon’s pick for the #1 AI Stock of 2024 and Beyond.

 

Click here for the details.

 

Good luck and God bless!




 

Market Mischief: Tech Stocks Soar, Yields Climb, Can You Tell Which is Higher?

 

Seems the market’s gone bi-polar this week. Tech stocks are on cloud nine, with semiconductors leading the charge after Taiwan Semiconductor Manufacturing (TSM) blasted off like a SpaceX rocket. Meanwhile, bond yields are doing the opposite of moonwalking – they’re power-walking straight uphill.

 

So, which is higher right now: TSM’s stock price or the 10-year Treasury note yield? Take a guess, and if you’re right, you win the dubious prize of… well, bragging rights and the knowledge that you’re slightly smarter than a confused hamster in a brokerage firm.

 

(Bonus points if you can explain why this matters!)

 

Answer: As of market close on Thursday, the 10-year Treasury note yield edged slightly higher than TSM’s stock surge. This divergence in direction reflects the market’s balancing act between growth and inflation concerns. Tech stocks, often seen as growth drivers, are rallying despite higher yields, while the bond market continues to price in expectations of future rate hikes.


 

Chart of the Day

Can $UBER Conquer Everest?

 

Uber’s stock has been circling its all-time high (set eons ago, in 2022) like a mountain goat eyeing the summit of Everest. Will it finally break through and claim yeti-peak territory? Or will it tumble back down the slopes, leaving investors with frostbite and regrets?

 

The chart throws out some mixed signals. On the one hand, repeated touches of the all-time high suggest buyers are lining up at base camp, ready to make the final push. Relative buying volume, has spiked at key junctures. And the MACD, a technical indicator that tracks momentum, hints at a potential bullish crossover.

 

On the other hand, the MACD also shows signs of lingering bearish undertones, like a yeti lurking in the shadows. And price action on lower timeframes shows a symbolical triangle, a formation not known for its decisive breakouts.

 

If Uber can surpass its Everest and retest it from above, with the broader market providing a sunny tailwind, then a fresh leg higher could be in the cards. But if it slips and falls, well, let’s just say the descent might be icy.

 

Keep Uber on your watchlist with an alert set for that crucial all-time high breach. This could be the summit push we’ve been waiting for, or just another false dawn. 

 

Bonus: Remember, even yetis need a good ride sometimes. Maybe Uber can offer them discounted fares to their icy lairs? Just a thought for the marketing team…


Sponsored

Investing Wizard Who Turned
$37K Into $2.7M in Just 4 Years
Makes His Next Big Move

 

Nate Beat - Play button
 

He started from nothing and became a multimillionaire…

He’s now one of the most sought-after trading experts…

Yet he operates 858 miles from Wall Street.

And now, he’s revealing his #1 favorite strategy that targets MASSIVE weekly profits with just one stock ticker.

SEE THE PROOF HERE


 

Trillionaires Rule the Roost: Is This a Market Party or a Monopoly Game?

 

Forget cowboys, Trendsters. Wall Street’s new sheriffs are trillion-dollar giants like Alphabet, Apple, and Nvidia. In 2023, these titans single-handedly hoisted the S&P 500, adding a cool $5 trillion to its market cap – nearly two-thirds of the year’s gains. Talk about carrying the team!

 

But this dominance raises some questions. Is this a diversified market buffet or a one-dish wonder dominated by these tech juggernauts? 

 

The numbers make the case for both awe and worry. Nvidia ended the S&P 500’s earnings slump, Big Tech’s layoffs saved corporate profit margins, and their collective rise fueled the 2023 rally. These aren’t just heavyweights; they’re the entire weight room.

 

And the party isn’t over yet. Wall Street expects these “Trillionaires” to keep the market chugging in 2024. But what if their AI dreams stall or other sectors falter? The pain could be widespread, as record profit margins face AI’s hefty price tag.

 

Then there’s the elephant in the room – a labor market potentially shrunk by automation. While these companies line their pockets, are we comfortable with a Silicon Valley-shaped future where robots serve lattes and code apps?

 

Perhaps “Trillionaires” doesn’t capture their full impact. These giants deserve a nickname that reflects their market monopoly, their power to bend trends, and the existential questions they raise. “Monopolizers?” “Algorithmic Overlords?” We’re open to suggestions, Trendsters.

 

One thing’s clear: while we watch these titans dance on Wall Street, it’s crucial to question the music they’re playing. This isn’t just a market story; it’s a tale about the future of work, wealth, and maybe even humanity itself.


 

Market Moves: Winners, Losers, and Rate Wrangling

 

Big Tech Takes the Win: Apple got a juicy upgrade from Bank of America, sending its stock soaring in anticipation of a “multi-year iPhone upgrade cycle” fueled by AI magic. Fastenal also outperformed, defying analyst expectations with stellar quarterly results.

 

Not So Golden: Birkenstock’s global expansion dreams turned into a profit squeeze, sending its stock tumbling. Discover Financial Services also felt the sting of missed earnings, while Humana’s medical cost woes dragged its shares down. KeyCorp had a rough day as well, reporting a steep drop in earnings and net interest income.

 

Oilfield Outlook Cloudy: Schlumberger, a major oilfield services player, faces an earnings test tomorrow. With oil prices down, its shares haven’t exactly been sparkling, but who knows what the black gold gods have in store?

 

Rates Remain the Riddle: The Fed’s next meeting looms, and investors are playing a game of “will they, won’t they” with rate cuts. Recent Fed chatter suggests the party might slow down later in the year, not come to a screeching halt in March.

 

Atlanta Fed President Bostic even poured some cold water on the “multiple cuts” fire, while Governor Waller hinted at a cautious approach. The CME FedWatch Tool reflects this shift, with odds of a March cut dropping and the January meeting looking like a hold.

 

Economy Shows Strength: Despite the rate drama, the economy seems to be hanging in there. Housing data beat expectations, suggesting builders might have something to smile about. Jobless claims also dipped to their lowest since September 2022, hinting at a resilient labor market.

 

Bottom Line: It’s a mixed bag on Wall Street today, with tech titans shining while others face setbacks. The Fed’s rate dance continues to intrigue, and the economy gives mixed signals. Stay tuned guys, it’ll get interesting!


 

Random Musings and the Time Machine

 

Random Musings?

 

Trillionaires and Taxes: If the market hinges on a handful of mega-companies, shouldn’t their tax bills reflect their outsized influence? Just a thought for our friends in Washington…

 

AI and Jobs: Can robots write catchy newsletters like this one? Maybe not yet, but if they do, let’s hope they keep the wit and ditch the paper clips.

 

Rate Hikes and Rollercoasters: The market might be bouncing around like a carnival ride, but at least the Fed isn’t promising cotton candy and funnel cakes (yet).

 

Birkenstock Blues: Who knew global expansion could be such a downer? Maybe Birkenstock should stick to comfort, not conquering the world.

 

Humana’s Woes: Rising medical costs seem to be the kryptonite of healthcare stocks. Investors, take your vitamins!

 

 

On this day in history, January 19th:

 

1958: The first integrated circuit, the tiny marvel that revolutionized electronics, is patented by Jack Kilby at Texas Instruments. A fitting reminder that even the mightiest tech titans started somewhere small.

 

1960: Batmobile built! Turns out, fighting crime is way cooler with a custom car (and Adam West’s chin).

 

1973: Vietnam War ceasefire. A turning point in history, and a reminder that wars often have unexpected economic consequences.

 

1983: Apple Lisa launched. Remember when computers had names like people? Lisa, we hardly knew you!

 

2006: Pluto demoted. Sorry, Pluto, but even galactic markets prioritize growth potential.

 


 

Final Ledger: Trillionaires Toast, Others Toast (Their Bread)

 

The market was a two-tiered terrace party, with the tech titans clinking champagne flutes while others made do with lukewarm punch. The Trillionaires, like Apple and Nvidia, kept the bubbly flowing, their valuations soaring on analyst upgrades and AI dreams. But in the garden, companies like Birkenstock and Discover Financial Services discovered their expansion plans had wilted, sending their stocks south faster than a runaway lawnmower.

 

So, was it a vintage year for your portfolio or a case of sour grapes? It depends on which vine you were clinging to. Tech ruled the roost, but threat of inflation and potential rate hikes kept some investors eyeing the storm clouds.

 

Remember, the market is a fickle chameleon, changing its colors quicker than a TikTok trend. As the old adage goes, “a diversified portfolio is like a well-dressed salad: greens, proteins, and a little crunch for good measure.


 







Get Your Free Actionable Trading Report Each DaySubscribe to the
I’m a Stock Trader
mailing list and get interesting stuff and updates to your email inbox.

Latest Newsletters

On this website we use first or third-party tools that store small files (cookie) on your device. Cookies are normally used to allow the site to run properly (technical cookies), to generate navigation usage reports (statistics cookies) and to suitable advertise our services/products (profiling cookies). We can directly use technical cookies, but you have the right to choose whether or not to enable statistical and profiling cookies. Enabling these cookies, you help us to offer you a better experience.