updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131The Nasdaq saw a lower close as tech stocks fell after Oracle released figures that disappointed Wall Street.
On Tuesday, the Nasdaq Composite closed lower, following disappointing figures from multinational computer technology company Oracle Corp (NYSE: ORCL). The development spread into a few tech stocks and other indexes.
While the Nasdaq fell 1.04% to 13,773.61, the S&P 500 closed at 4,461.90 after losing 0.57%. The Dow Jones Industrial Average (DIJA) also recorded a loss, shedding 0.05% or 17.73 points to close at 34,645.99. Interestingly, the Nasdaq Composite has climbed more than 18% over the past year, and 31.06% year to date (YTD), according to data from MarketWatch.
Oracle shares closed at $109.61 after falling 13.5%, the company’s worst trading day in 21 years, since March 2002. Oracle has lost nearly 12% in the last five days, 6.55% over the last month, and more than 6% in the past three months. Nonetheless, the company’s stock has seen better days as it has jumped more than 44% over the past year, and 34.1% YTD.
Oracle had posted financial results of its fiscal Q1 2024, showing some figures that missed Wall Street expectations. The database maker’s earnings came in at $1.19 per share, adjusted, slightly beating the expected 1.15, according to LSEG. However, revenue also fell slightly to $12.45 billion compared to the expected $12.47 billion.
There were a few other declines, including hardware revenue at $714 million, falling 6% year over year (YoY). Analysts surveyed by StreetAccount were expecting $739.6 million. Also, although cloud infrastructure revenue increased 66% to $1.5 billion, recorded growth was lower than the 76% from the first quarter.
Regardless, Oracle said it is looking forward to more cloud sales. Chair and technology chief Larry Ellison said in a statement:
“As of today, AI development companies have signed contracts to purchase more than $4 billion of capacity in Oracle’s Gen2 Cloud. That’s twice as much as we had booked at the end of Q4.”
Apple (NASDAQ: AAPL) also fell, closing 1.71% lower at $176.30 after announcing new products, including the iPhone 15 series, a new Apple Watch, and AirPods updated with USB-C. Adobe Inc (NASDAQ: ABDE) shares also fell, closing 3.95% lower at $542.21. Amazon.com Inc (NASDAQ: AMZN) fell 1.31%, while Microsoft Corporation (NASDAQ: MSFT) lost 1.83% and closed at $331.77. There was a similar plunge in Alphabet Inc as it lost 1.15% and closed at 135.12.
The Nasdaq is generally still upbeat as it has gotten much attention from foreign companies looking to list in the US.
“We are bullish on China and will continue to be as we see more and more Chinese companies listed on Nasdaq in the months and years to come,” said Nasdaq vice chairman Robert McCooey at the US-China Business Forum in New York.
McCooey added that the Nasdaq “pipeline” is strong for Chinese companies interested in the US market. He also stated that China is an important region that contributes to the growth of Nasdaq, and also the global economy. Currently, more than 200 Chinese companies are trading on the Nasdaq, including Baidu, JD.com, and Pinduoduo.
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At the core of the Nasdaq Composite’s resurgence was the undeniable role of bonds and economic data.
In a remarkable turnaround, the Nasdaq Composite (INDEXNASDAQ: .IXIC) gained more than 1% on Tuesday. Amidst global concerns about inflation, rising interest rates, and supply chain disruptions, the index managed to reclaim lost ground, providing a glimmer of hope to investors who had witnessed a series of fluctuations throughout August.
The tech-heavy index exhibited remarkable resilience by gaining 1.74%, closing at an impressive 13,943.76 points. This climb served as a reminder of the Nasdaq’s historical resilience in the face of adversity, drawing parallels to its ability to bounce back from previous downturns.
The Nasdaq’s strong performance triggered a favorable domino effect across other key indices. The S&P 500 Index (INDEXSP: .INX) marked its best performance since early June by climbing 1.45% to conclude at 4,497.63. Similarly, the Dow Jones Industrial Average (INDEXDJX: .DJI), composed of blue-chip companies from diverse industries, increased by 292.69 points or 0.85%.
Meanwhile, Nvidia Corp (NASDAQ: NVDA), a well-known chipmaker, took the lead among stocks with a rise of more than 4%. This gain set the tone for other technology stocks to rise, indicating renewed investor interest in the industry. The success of Nvidia reverberated through the market, propelling shares of major tech players like Meta Platforms Inc (NASDAQ: META), Tesla Inc (NASDAQ: TSLA), Apple Inc (NASDAQ: AAPL), and Microsoft Corp (NASDAQ: MSFT) to finish the day on an upbeat note.
While the spotlight shone brightly on the tech sector, other notable movements also captured market participants’ attention. Telecommunications giant AT&T Inc (NYSE: T) saw a rise of 3.9% after receiving an upgrade from Citi. Similarly, Best Buy, a prominent retailer, witnessed a 3.8% increase in its shares following a reported earnings beat.
At the core of the Nasdaq Composite’s resurgence was the undeniable role of bonds and economic data. Falling bond yields, a consequence of the release of new US economic data, played a pivotal role in reinvigorating investor interest in the tech sector.
The 2-year Treasury yield, a key benchmark, witnessed a substantial decline of up to 16 basis points. This downward movement was triggered by softer-than-expected consumer sentiment data, which registered a reading of 106.1, notably lower than the forecasted 116 reading by economists polled by Dow Jones.
Another key influence was a favorable court decision for Grayscale Investments against the US Securities and Exchange Commission (SEC) in its Bitcoin Exchange Traded Fund (ETF) case.
This news rippled through the market, elevating the value of crypto exchange Coinbase Global Inc (NASDAQ: COIN) by nearly 15%. The possibility of a Bitcoin ETF has long been a topic of interest among investors, as it could provide a more accessible and regulated way for traditional investors to participate in the crypto market.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
The slump in the Nasdaq Composite was fueled by some key stocks that recorded significant losses on Thursday.
The United States stock market clawed back its gains on Thursday with major indices, led by the tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) closed in the red. The Nasdaq Composite plunged by 1.78% to 11,855.83 while the Dow Jones Industrial Average (INDEXDJX: .DJI) shed off 431.20 points atop a 1.26% slip to 33,696.85. The broad market benchmark, S&P 500 Index (INDEXSP: .INX) dropped 1.38% to 4,090.41.
The market was riled again as the clamor for new interest rate hikes was echoed by the Federal Reserve Presidents of St Louis and Cleveland, James Bullard, and Loretta Mester. Both Fed leaders are in support of hiking the previous interest rate by 50 basis points as they believe the fight against inflation is not yet won.
“I was an advocate for a 50-basis-point hike and I argued that we should get to the level of rates the committee viewed as sufficiently restrictive as soon as we could,” Bullard said during a speech in Tennessee, according to Reuters.
While the worries about inflation are still multifaceted, Bullard said he sees the trend moving toward disinflation. Though he isn’t anticipating a slip back to the Fed’s target of 2-4%, he is still optimistic about a significant drop from the current level of 6.4%.
“In part due to front-loaded Fed policy during 2022, market-based measures of inflation expectations are now relatively low,” Bullard said, adding that “Continued policy rate increases can help lock in a disinflationary trend during 2023, even with ongoing growth and strong labor markets, by keeping inflation expectations low.”
The market was quite relieved that the Fed turned Dovish per its approach to rate hikes and this proposed new stance has got the market pricing in.
The slump in the Nasdaq Composite was fueled by some key stocks that recorded significant losses on Thursday. American multinational tech giant, Microsoft Corporation (NASDAQ: MSFT) led the losses with a 2.66% slump to close the trading session at $262.15 per share. Walt Disney Co (NYSE: DIS) was also a significant stock whose 3.12% drop came and weighed in on the broader stock market.
The January Consumer Price Index (CPI) was pegged at 6.4% compared to the year-ago period. Jobless claims also dropped compared to general expectations from analysts.
“Both inflation readings this week point to the stickiness of inflation and that the fight isn’t over, especially when considering today’s PPI reading was the highest month-over-month increase since early summer,” said Mike Loewengart, head of model portfolio construction at Morgan Stanley.
With the earnings season still underway, investors and the broader market observer will be keen to see how the inflation in the US is pricing in these key segments of the economy.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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In this episode of NewsBTC’s daily technical analysis videos, we compare Bitcoin price action with Wyckoff accumulation schematics, price cycles and more.
Take a look at the video below:
This video provides a detailed look at Bitcoin market cycles using Wyckoff theory and other cyclical tools.
Wyckoff theory is based on the idea that retail traders are regularly outsmarted by large operators he referred to as the Composite Man. It is also known for its phases of accumulation and distribution, and the mark up and mark down phases that occur in between as the market goes through bullish and bearish cycles.
The recent price action continues to follow what looks a lot like Wyckoff accumulation. After breaching preliminary support, price reached the selling climax at $17,500. What we potentially just saw this week was a secondary test in phase B. that’s the good news. The bad news is that there could be a long time until we see high prices again.
A comparison with an Wyckoff accumulation schematic | Source: BTCUSD on TradingView.com
That was also just one of Wyckoff’s accumulation schematics. Another schematic example includes a final shakeout called a spring. Based on the schematic, the spring would occur some time around December and a breakout would occur in April.
This is especially notable, because that is exactly when Bitcoin bottomed in 2018 and when the accumulation phases ended in 2019. Even more interesting, is the fact that December has frequently been a timing factor for tops and bottoms in Bitcoin all throughout its history.
Will we get a spring or not? | Source: BTCUSD on TradingView.com
Related Reading: WATCH: Ethereum Gains Momentum Ahead Of The Merge | ETHUSD September 6, 2022
Even the 2017 peak was in December, which we are currently retesting for the umpteenth time. The month of December mysteriously was one of WD Gann’s favorite months to look for tops and bottoms, and it was due to how the Sun conjuncts Mercury while in Sagittarius.
Gann, like Wykoff was one of the all-time greats. Both are known as two of the five titans of finance, which include with Charles Merrill from Merrill Lynch, Charles Dow from Dow Theory and the Dow Jones Industrial Average, and Ralph Nelson Elliott who created Elliott Wave Theory.
Gann’s methodology was the most mystical of them all. Check out how flawlessly one of his tools, the Gann fan, called the breakout from the bear market and an incredible 500% advance in the example below.
Gann's tools are based on geometry, angles, and time | Source: BTCUSD on TradingView.com
Markets are indeed cyclical, as Wyckoff and the other greats believed. The cycle begins with accumulation after an asset becomes oversold. Demand begins to outweigh supply and mark up begins. Then the composite man begins to slowly distribute on retail, before mark down begins and supply outweighs demand.
It sounds simple, but this is just how it works. Bases on a visual inspection alone and how history has rhymed in the past, we could potentially be in or nearing accumulation and mark up will return soon enough.
Is it almost time for another bull run? | Source: BTCUSD on TradingView.com
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Featured image from iStockPhoto, Charts from TradingView.com