Trading Competitions: Week 4 Recap

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.

It seems like Nvidia is hitting a new milestone every day, so why would today be any different? 🤷

This morning, we saw a massive squeeze in shares of Arm Holdings, which soared more than 40% before pulling back midday. That led to other semiconductor stocks rising alongside it as investors’ optimism around the sector continued. 📈

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. 👀