Big Tech Slaughtered as Microsoft Tanks 5% on Earnings but…
On Tuesday we witnessed the power of the bears, as the market lost significant value throughout the day. This is the power of the 5th Astro cycle that has brought the NASDAQ almost 2000, and S&P 200 points lower since it started. We recommended that our members remain careful during this cycle and close all long positions in the market if you are a medium-term trader, and I am sure that many must have done so.
After the market closed, two of our favorite companies, MSFT, AMD, and SBUX, announced earnings. MSFT lost more than 5% value as the company announced a beat on both the top and bottom lines but slowed growth with Microsoft Azure. We are slowly seeing the market realigning their portfolios and moving money from big tech into Russell and Dow. The expectations for AI and these larger companies to show the fruits of their labor are very high, and even a small mishap can cause a selloff, as was seen in MSFT after the market closed.
AMD, on the other hand, moved higher after earnings as they beat on both the top and bottom lines. They also reported better-than-expected guidance for the 3rd quarter. AMD has been on our favorite list for a long time, and we are sure many of you must still hold long positions in it.
Our predictions: Last week, we predicted a major rally would start this week, and the rally could be a minimum of 5%, and we are still making this prediction. We are recommending aggressive long in MSFT, NVDA, AMD, and all other our favorite stocks on Wednesday as I won’t surprised at all if most of these stocks move sharply higher on Wednesday after opening and MSFT may close in green.
SBUX also announced earnings, reporting declining sales, but shares of the stock moved 2% higher after the market closed.
The name of the game has become short, big teach, and reconsolidating money into the other sectors. That is what we have seen since the beginning of the 5th cycle, as all the major mega-cap tech stocks have lost value significantly. I don’t think a better opportunity than this is coming soon, so start accumulating stocks.
Gold, silver, and copper moved higher as predicted. Other base metals also gained value but book profit on the higher sides, don’t short.
Energy prices traded negatively and oil tested $75.00 as predicted. The oil, heating oil, and RB gas lost value on Tuesday. Natural Gas prices consolidated around the lower side and then moved higher by the end of the day.
Grains lost significant value throughout the day as Corn, Wheat, and Soy bean each lost around 1.5-2% value.
Soft commodities traded mixed without gaining much value, except for Cocoa which moved 5% higher by the end of the day.
All the commodities traded mixed to negatively throughout the day.
Currencies lost value against USD, but YEN and Rand gained value. Tomorrow will be interesting day as FED meeting will take place. Bond prices gained value.
What a perfect predictions we mentioned in book, last four cycles our view was very bullish for market, and in the current cycle our view is very neagative and uncertain. I don’t think anyone on this planet predicted with this kind of accuracy. All these 2024 predictions were made in November 2023 in our book “2024 Financial Predictions”.
Our previous forecasts identified significant S&P Astro resistance levels (5775) and NASDAQ levels (21111), which are profit booking levels. We also projected that the S&P will reach 12500 and the NASDAQ will hit 45000 by 2029. These predictions underscore the importance of planning your long-term strategies accordingly.
· This is what we mentioned on the 26th of October 2023: The Astro combinations will turn extremely positive on Monday, the 30th of October, before the USA market opens or on the 4th of November. This is excellent news for investors as we expect a dark cloud to clear from Jupiter, which is currently ruling the market trends. One of the biggest Airavath (bullish) trends will start from 30 Oct or 4th Nov 2023.
· Our astro cycle provided a perfect bottom for the market position in October 2022, when the S&P was at 3495 and the Nasdaq at 10555.
· On 22 March 2020, the astro cycle provided an exact bottom for the S&P at 2293 and NASDAQ at 6795.
· Early this year, I was in India and provided an interview to Zee Business TV. You can change the language to English subtitles or any other language for the interview in Hindi.
https://www.youtube.com/watch?v=Ov0sagnK8A4
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Thanks & God Bless
Mahendra Sharma