Investors sometimes disappointed with results they get in rear-view mirror earnings, or even solid reports that don't reflect the real future (that's always the issue with history), are asking for too much as regards 'immediacy'.
As I've explained this past week, that's part of why any number of stocks ran up with 'hot money' speculation (last year and/or this year); then settled-into basing pattern ranges (more so than declines); as the fast-buck crowd went for the exits (impatient); and others stepped-up to the plate more quietly. It's a bit like happened with the 'cryptocurrency' / 'blockchain' bubble last year; a realization set-in that the former uses the latter; but the latter is actually the technology. And as some legitimization seems to be returning to the digital currency realm (not the usual suspects of last year), Semiconductor companies may benefit.
They are gradually shrugging-off inventories and decidedly bearish tone as suffered really around the time I warned from Berlin last August/September, with many cut in-half. I favored (and wrote-up) Advanced Micro Devices as a buy around 16-17; and continued avoiding competitor NVidia. Crypto ETF launches and a JP Morgan Chase 'coin' (which is 1-1 fiat) helps revive but likely does not ignite another ridiculous craze (like when I warned of Bitcoin at around 20,000 and reiterated when it was down to 14,000; and all the way down to now; with a base developing, but again a safer way to approach all this is with Blockchain computing).
Speaking to that Intel is doing a bit better; but not stellar. I must mention (as this is a more technology-oriented report given the market performing just in the way we outlined and expect to flow), that aside from 'not' being able to deliver 5G modems for iPhones in quantity in time for this year's upcoming model, there's more happening beyond Apple's reliance on Intel due to prolonged litigation with Qualcomm.
There is a (fairly reliable source) rumor that Apple will do an Intel upgrade, any week now, with the newest processor for the iMac and MacBookPro. At the same time though, I hear Apple is hoping to ready an 'advanced ARMS' processor (that's what they already use in iPhones & iPads) 'in' the full-size Mac's of all stripes. 'Desktop category' is how Tim Cook describes Apple's ARMS (made for Apple typically in Taiwan under license from ARMS).
The reason for this is not just hurting Intel, though it would be a huge loss of that level of customer. It relates to the commonality of Applications running on IOS (phones etc.) devices and Mac OS (computers). Currently they don't have the capability of seamless cross-compatibility. That is the goal and it's very important for the 'enterprise' sector as well. Apple hasn't penetrated it adequately despite trying; and this would help them.
It will be awhile before the 'fruits of the tech labors' in most areas are clearly realized, which is why I have describe 2019 as primarily a 'transition year'. I will try to simplify the rather complex technological paradigm shift, briefly.
Daily action - the market on Friday held together and advanced smartly in late going; as the President again reinforced ideas of China-deal progress; and replaced the term 'Memorandum of Understanding' during verbal slight sparring with Lighthizer and the Chinese; and said: 'Trade Agreement'.
This weekend those negotiations go on; the President prepares to leave for Hanoi's Summit with North Korea's Kim; and the fight to liberate Venezuela goes on for the most part peacefully (but jittery), as two more were killed by troops (Cuban?) while more soldiers defect Maduro. I foresee the tide fully shifting and odds of Maduro and his henchmen getting out of this scot-free decrease every day they fail to concede their time in the sun is past.
The new trading week may oscillate a bit and then have another S&P effort to rally; providing none of the key issues go south. Strong Oil likely is a key (or at least stable oil).
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