In today’s briefing:
- MV US Listed Semiconductor 25 Index Rebalance: Over US$1bn to Sell in NVIDIA
- A Hindenburg Moment For Growth Stocks?
- EQD | S&P500 WEEKLY Pull Back: BUY the Dip
MV US Listed Semiconductor 25 Index Rebalance: Over US$1bn to Sell in NVIDIA
- There are no constituent changes for the VanEck Vectors Semiconductor (SMH US) ETF in March but there are a lot of float and capping changes.
- Taiwan Semiconductor (TSMC) – ADR (TSM US) is the largest buy while capping results in NVIDIA Corp (NVDA US) being the largest sell by far.
- Estimated one-way turnover is 8.3% resulting in a round-trip trade of nearly US$3bn. There are a few stocks with more than 0.2x ADV to trade.
A Hindenburg Moment For Growth Stocks?
- Our base-case scenario calls for a period of minor weakness in the S&P 500 or sideways consolidation, marked by a rolling correction.
- A review of market internals reveals weakness in growth stocks and better performance by value and cyclical stocks.
- The risk is a major scare in the extended growth names which drag down the S&P 500 further than we expect.
EQD | S&P500 WEEKLY Pull Back: BUY the Dip
- The SPX has been rallying for 4 months, rising >+24%, is is OVERBOUGHT but we see the current pullback as a BUY opportunity.
- The index could pullback another 1-2 weeks before it restarts the rally.
- Price areas to buy are between 5069 and 5000, lower prices may indicate a deeper correction is unfolding (lasting up to 3 weeks down in total).
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