Market Talk
This is not an easy market to navigate.
Volatility in many stocks has become a roller coaster, swinging from doom and gloom to “happy days are here again” in a matter of days. Today’s bounce pushed the Dow to an all-time high above 50,000. But if you were holding certain names — Amazon, for example, down sharply — you may not be sharing the enthusiasm of the hyped-up TV commentators.
To many traders and investors, this market feels almost bi-polar.
Is today’s end-of-week rally the start of a new trend? Or is it a one-day “happy slap,” only to be followed by renewed selling from hedge funds and short sellers?
Decisions about deploying sidelined cash are personal. One possible approach is to test the trend with small positions in stocks you have conviction in and see whether the reset proves real.
Stock Talk
In times like these, sometimes the best approach is a small position to test the trend in a stock you believe in.
One remaining area of interest here is gold. Silver has become more uncertain, as its volatility may be reflecting concerns about a possible economic slowdown. At the same time, some recent swings may simply reflect misplaced views on future demand and temporary market distortions.
Judging by today’s positive move, there appears to be renewed conviction that silver demand remains intact. Claims that solar manufacturers will quickly replace silver in panels to improve conductivity may or may not prove accurate. As a result, some pundits are now suggesting that the “silver short” thesis is on hold.
Among the miners, several names stand out.
Kinross Gold (KGC) offers both gold and silver exposure.
Hecla Mining (HL) remains primarily a silver producer following its recent gold asset sale.
Coeur Mining (CDE) continues to produce both gold and silver.
In this market, certainty is hard to come by. Still, fundamentals such as earnings growth and fiscal discipline may support continued upside. Whether that plays out remains unclear. From this desk, these names look constructive — with the caveat that conditions can change quickly.
Among other Jones watch stocks, it bears repeating these are watch stocks. Prices can move up or down.
One notable bounce today was in Navitas Semiconductor (NVTS), tied to growing interest in high-power semiconductors for data centers supported by NVIDIA. During this transition, Navitas has at times been overlooked as it shifts toward higher-power applications:
Also noteworthy is GlobalFoundries (GFS), which is positioned to manufacture Navitas chips domestically. Recall that GFS once produced chips for Advanced Micro Devices before much of that production moved offshore.
GlobalFoundries serves what might be called the “electronics of everything,” supplying many industries with specialized chips. With renewed emphasis on domestic manufacturing, GFS remains a solid watch candidate. That said, it remains a “some stock, not too much stock,” until earnings show stronger growth.
This area will be explored further in future posts. For everyday readers, be prepared to be somewhat gobsmacked by the science of smallness — measured in nanometers.
In Closing
This is just a snapshot of current market conditions and a few stocks we continue to watch.
Be watchful and circumspect at your own trading and investment desk. Stay tuned here if you enjoy these posts — and feel free to share them with others. They remain free to read, with no obligation beyond doing your own homework.
- Jones Report
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If interested - scroll back and view notes on other stocks, we watch here at the Jones report. Why not? With the caveat that things change and we try to stay aware - It's all FREE to read and make your own calls and decisions. Finally - maintain some dry powder and trade or invest according to your own due diligence.
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More later so ....Stay tuned, if you dare!
For now, we close by noting that any view on the market and stocks on any particular day may change in the days to come. That is why we watch and see how our views match up with reality. Looking ahead a few months may be a way to do things - but thinking too deeply about world events and the recent alliances forming, can make projecting ahead a dicey endeavor.
All in all - we use the word maybe "some", not "too much" and play it accordingly. Never get arrogant in our notions because things do change - and individual stocks are subject to many factors outside our control. So, we try to -stay aware.
With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.
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