Remy Blaire is joined by Larry Tentarelli, the Chief Technical Strategist at Blue Chip Daily Trend Report, to discuss the current state of the stock market as Thanksgiving approaches. The episode begins with a focus on the S&P 500, which has fully rebounded from a recent sell-off following NVIDIA’s earnings report. Remy notes that all sectors of the S&P 500 are in positive territory, with communications, services, IT, and utilities leading the gains.
Remy and Larry delve into the S&P 500’s performance, highlighting that the index is currently trading above its 50, 100, and 200-day moving averages. Larry shares his insights on the market momentum, pointing out a significant reversal in stock performance, with 88% of S&P 500 stocks rising on Friday and 84% the following day. He expresses confidence that the lows for this pullback may be behind us, estimating a 75 to 80% chance of sustained upward movement.
The conversation shifts to Alphabet, Google’s parent company, which is experiencing a surge due to its advancements in artificial intelligence (AI). In contrast, NVIDIA faces challenges amid concerns about increased competition. Larry emphasizes the importance of owning both companies, as they are leaders in the AI space. He notes that while NVIDIA has seen a pullback, Alphabet has reached new all-time highs, indicating a significant shift in the AI landscape.
As they discuss the ongoing negotiations between Google and Meta regarding tensor processing units (TPUs), Larry suggests that this is more of an adjustment in the market rather than a complete shift in dominance. He maintains that NVIDIA remains a core leader in the AI hardware race.
With the Thanksgiving holiday approaching, Remy and Larry also touch on the rising expectations for a Federal Reserve rate cut in December, with probabilities now above 82%. Larry discusses the delicate balance the Fed must maintain between political pressures and economic realities, especially given the delayed data influencing their decisions.