Market On Open, Friday 23 January
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Enjoy The Weekend. And Buckle Up.
by Alex King, CEO, Cestrian Capital Research, Inc.
Intel reported its Q4 earnings yesterday after the close - we have a no-paywall note here if you care to take a look.
Alex King
Income statement numbers were good - a beat on the top and bottom line - and to anyone who has ever been involved in a corporate turnaround, I think progress on cashflow and balance sheet was very good.
Despite which, the stock is presently down around 12-13% as I write, in pre-market trading Friday. Now, admittedly, the stock had run up a lot and we had been flagging to our Inner Circle members some days ago that earnings could see an adverse reaction. If this is just a temporary selloff, OK. But it is possible, just possible, that the dump in $INTC portends a rotation of capital out of semiconductor and into other stuff. For no reason other than … this is how you make money if you are Big Money. Accumulate at the lows, ride price up whilst late money is chasing, distribute at the highs when folks are wondering when things will top out but have too much FOMO to sell themselves. This method, famously captured by the concept of Wyckoff Rotation, is tried and tested, it works, and it can be mimicked and followed no matter whether you run Big, Small or Medium Sized Money. Take a look at the video below where we explain this in more detail.
Semiconductor is ripe for distribution in my view. Doesn’t mean it’s going to happen - the sector can keep running up - but a prudent investor would be getting ready to take gains here before the masses run for the door. There’s some evidence the selling has started in $NVDA, but nothing conclusive yet in my view.
So, as always, watch price not narrative, and see if the fear and loathing currently taking hold in Santa Clara spreads to the rest of the Valley and beyond.
Next up, our daily market analysis note for our Inner Circle members.
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