TSLA
Tesla
-- 379.280 NVDA
NVIDIA
-- 138.310 RGTI
Rigetti Computing
-- 20.0000 PLTR
Palantir
-- 75.190 AMD
Advanced Micro Devices
-- 120.630 
30 Dec Downside Bias Attributed to Profit-Taking After Strong 2024
Major U.S. equities indexes moved lower at the onset of another holiday-shortened trading week as the positive momentum that has lifted stock markets in 2024 failed to carry over into the year's penultimate trading session.
The S&P 500 fell 1.07% on Monday. The DJIA ended the session 0.97% lower, while the tech-heavy NASDAQ dropped 1.19%. U.S. stocks had also tumbled on Friday, erasing most of the gains posted earlier during the holiday-shortened trading week. With one trading session left in December, the S&P 500 and Dow are each on pace to record their biggest monthly losses since April, as a big post-election rally has faded.
Declining issues outnumbered advancers by a 1.81-to-1 ratio on the NYSE. There were 55 new highs and 231 new lows on the NYSE.
On the Nasdaq, 1,604 stocks rose and 2,765 fell as declining issues outnumbered advancers by a 1.72-to-1 ratio.
The S&P 500 posted no new 52-week highs and 15 new lows while the Nasdaq Composite recorded 63 new highs and 118 new lows.
Volume on U.S. exchanges was 14.48 billion shares, compared with the 14.75 billion average for the full session over the last 20 trading days.
The downside bias was attributed to profit-taking after a strong year and caution ahead of New Year's holiday closures.
S&P 500 Consumer Discretionary Biggest Lagger
All 11 major sectors of the S&P 500 lost ground on the day, with consumer discretionary suffering the largest percentage decline, falling 1.6%
Large-cap technology stocks were mostly lower on Monday, led by a 3.3% decline for $Tesla (TSLA.US)$ , which has now fallen sharply in three straight sessions ahead of the EV maker's quarterly deliveries report that's due on Thursday.
This drag the consumer discretionary sector down with a loss of -1.59%, with Amazon (AMZN) also lost ground dragging the sector down.
The Information Technology lost 1.09% as we saw $Apple (AAPL.US)$ , which has been on the verge of becoming the first company to ever have a market value of $4 trillion, slipped 1.32%, while Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META) and Broadcom (AVGO) also lost ground.
AI investor favorite Nvidia (NVDA) rose 0.4% and was the only Dow component to finish the session higher. This has helped to strengthen my conviction of buying into good quality AI stocks, I believe $NVIDIA (NVDA.US)$ should do well in 2025 as AI revolution shift.
Note Yield Also Down
Treasuries saw gains, benefiting from safe-haven buying and rebalancing activity as stocks faced selling pressure. The 10-year yield settled seven basis points lower at 4.55%, while the 2-year yield settled eight basis points lower at 4.25%.
Stocks To Watch
Bill Ackman, the billionaire hedge fund manager, expressed optimism about the common shares of $FEDERAL NATIONAL MORTGAGE ASSOC (FNMA.US)$ and Freddie Mac (FMCC), citing potential for significant upside. Ackman, through his fund Pershing Square, has held shares in these government-sponsored enterprises for over a decade. He believes there is a credible path to their removal from conservatorship in the next two years, which could result in substantial profits for the federal government and reduce liabilities.
Quantum computing stocks, including Rigetti Computing (RGTI) and D-Wave Quantum (QBTS), saw declines, despite a year of significant gains. The sector has attracted attention following major developments, such as Alphabet's (GOOGL) new quantum chip and Amazon's (AMZN) quantum program. Investors remain cautiously optimistic about the sector's future potential.
$Faraday Future Intelligent Electric Inc. (FFIE.US)$ surged on news of its upcoming FX prototype car unveiling at CES 2025, alongside the delivery of its first FF 91 2.0 Futurist Alliance EV. Entrepreneur Luke Hans will play a significant role in the company's business development and sales efforts as a Developer Co-Creation Officer.
I would not be getting too excited for FFIE, as the technicals is still showing weakness in FFIE shares, and with the MACD trying for a bullish upside, but MTF is forming a downward trend.
FFIE just cross 50-day MA, but too far from its 200-day MA period, so we need to see stronger conviction from traders and investors to come and help bring it higher.
Nvidia (NVDA) was the only Dow stock in positive territory. Shares advanced when the artificial intelligence (AI) chipmaker completed its acquisition of Israel-based AI infrastructure firm Run:ai.
Shares of another AI-related company, Palladyne AI (PDYN), took off after the manufacturer of software for robots reported a drone using its technology successfully tracked a moving target for the first time.
Energy companies, including EQT (EQT) and Coterra Energy (CTRA), dominated the list of top gainers in the S&P 500 as natural gas prices skyrocketed on expectations of big demand because of colder weather ahead for the U.S. and Europe.
Summary
Market look to continue the downside bias because the profit taking does not look like it is completed, I am looking at some of the small caps stocks as these might gain momentum from investors who are still in the market.
So we might see some of these stocks making some significant movement.
Appreciate if you could share your thoughts in the comment section whether you think market would continue the pullback and trading in a downside bias because of profit-taking.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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103210545 : Where do u get the heat map in moomoo? Can you guide me pls
nerdbull1669 OP 103210545 : I did it from the moomoo desktop app, go to Explore , then select US
you will see the heatmap below, then you can select industry to expand it.
Hope this helps. Let me know if you need more information.
you will see the heatmap below, then you can select industry to expand it.
Hope this helps. Let me know if you need more information.
Dan’l : Yours is the best explanation I’ve seen as to why Santa seems to have skipped my portfolios this week.
Not saying you’re wrong in regard to Small Caps, but several analysts have been steering the other way, into the top thirty, instead… starting 25 behind.