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Thursday, December 28, 2023

Santa Rally?

Santa Rally? 

That's what the skeleton crew at CNBC - working over the long holiday - was calling the retest of the highs of last week. Could the financial lame stream media be any lamer?   

It seems to me nobody wants to chase another low volume rally - after what happened over the summer - and even the fast money crew is looking for a sector rotation, out of the high fliers, and back into energy, or even financials? Do these fools not realize the $BANK index is already up over 17% for the month? They even mentioned a possible rally in biotech stocks, so they seem to be grasping at straws.

The High Fliers Continue to Hold Up of Course 

I'm going to give you the same advice I gave last year, and that is to chart all the overweight components in the Nasdaq/ $QQQ's, the $SPX, and Dow. That will give you a good insight into how the major indices are continually rigged higher.    

Broadcom $AVGO - for instance - driven into a short squeeze, just ahead of the Christmas break. 


And Speaking of Semiconductor Manufacturers 

I was actually stunned by the announcement of the most recent Intel Israel entanglement, but what is even more shocking to me is that this has been building over an entire generation. 

See: 

 

Intel in Israel: A Fab Relationship Faces Criticism

September 29, 2014 • 15 min read

One of the biggest players in Israel’s growing tech sector, U.S.-based Intel has drawn considerable controversy because of the subsidies it has received over the years to build and expand its presence there. 

From that article: 

Going back three decades, Intel’s Israeli R&D center created the 8088, a cheaper version of Intel’s flagship 8086 processor that was adopted by IBM to power its first personal computer. Later, it was Israeli engineers who coaxed headquarters back in Santa Clara to abandon a planned shift into RISC technology and instead improve the best-selling 486 into a line of microprocessors that came to be known as the Pentiums (although the chip itself was designed in the U.S.).

Of course Wall Street celebrated the confirmation of yet another Israel Intel (US) entanglement, with a test of the 2000 highs.  

Intel $INTC


As far as the broader market is concerned:

I'm still expecting a bit of a shakeout, before money is put to work in 2024. 

$VIX - I thought the $VIX may have been hammered to the 11.50 level over the holidays, but I think we could see the 20 level tested, first.  

Take care, 

AA 




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