Another China Crackdown 📉

Semiconductor stocks remain the focus of investors and traders, with Nvidia and Super Micro Computer pushing to all-time highs. The industry is starting the week with several analyst upgrades as Wall Street continues to chase these companies higher. 🌠

Despite the growing concern that the fundamentals may not fully support these short-term surges in price, the path of least resistance remains higher.

Nvidia’s evil plan to take over the stock market was put on hold today despite labor market data helping build the case for a June rate cut. 🤔

The February jobs report showed that nonfarm payrolls rose by 275,000, topping the 198,000 expected. However, the previous two months’ numbers were revised lower by 167,000 jobs, causing the unemployment rate to jump to 3.90% and signaling a further softening of the labor market. 🔻

When the Department of Justice successfully blocked the merger of JetBlue and Spirit Airlines earlier this week, we knew it would be an ongoing story. However, very few people saw it taking the turn it did today, with Dave Portnoy (aka “Davey Day Trader”) emerging from the shadows and rallying fellow retail traders behind the company.

Let’s see what happened. 👀

Signs of froth in the market have been building since November and accelerated up in February, with the major indexes adding to their gains and tech giants becoming giant-er. Timing when the music will stop is a fool’s errand, but when it does end, we all inevitably look back through the lens of hindsight at the “obvious” signs things had gotten a bit crazy. 🤪

Some more of those signs of at least a short-term peak in sentiment appeared today, so let’s check them out. 👀