Samsung Profits Surge 1300%; 30-Year Bond Yield Highest Since 2007; Momo's Favorite Semi ETF Loses 70%
Egypt Fear Please click here for an enlarged chart of Direxion Daily Semiconductor Bull 3X ETF (NYSE: SOXL ). Note the following: Semiconductors are the leading sector that drove the stock market higher. SOXL is the momo crowd’s favorite semiconductor ETF. The chart shows that from the recent high made in June, SOXL lost 70% to yesterday’s close. The chart shows SOXL made a lower low yesterday. The chart shows selling in SOXL yesterday was on heavy volume. The reason for the heavy volume was that many momo crowd accounts were hit with margin calls and were forcibly liquidated. RSI on the chart shows SOXL is moving out of the oversold zone. This sets SOXL up for a potential bounce unless there are more margin calls and more momo accounts are liquidated. A big driver of the stock market has been demand for DRAM memory. Most of the DRAM market is controlled by three companies: Micr...
Egypt Fear Please click here for an enlarged chart of Direxion Daily Semiconductor Bull 3X ETF (NYSE: SOXL ).
Note the following: Semiconductors are the leading sector that drove the stock market higher.
SOXL is the momo crowd’s favorite semiconductor ETF.
The chart shows that from the recent high made in June, SOXL lost 70% to yesterday’s close.
The chart shows SOXL made a lower low yesterday.
The chart shows selling in SOXL yesterday was on heavy volume.
The reason for the heavy volume was that many momo crowd accounts were hit with margin calls and were forcibly liquidated.
RSI on the chart shows SOXL is moving out of the oversold zone.
This sets SOXL up for a potential bounce unless there are more margin calls and more momo accounts are liquidated.
A big driver of the stock market has been demand for DRAM memory.
Most of the DRAM market is controlled by three companies: Micron Technology Inc (NASDAQ: MU ), SK Hynix Inc — ADR (NASDAQ: SKHY ), and Samsung Electronics Co Ltd (OTCPK:SSNLF).
Previously, Micron reported outstanding earnings, better than whisper numbers, but MU stock fell.
SK Hynix reported earnings lower than whisper numbers and consensus, and the stock fell.
Overnight, Samsung is reporting outstanding earnings.
Here are the details: Samsung net profit for the quarter came at 71.625T South Korean won vs.
70.17T won consensus.
This is about a 1300% rise year-over-year.
Q2 revenue came at 171.5T won vs.
74.6T won last year.
Samsung expects memory demand to stay robust to 2028.
The chart shows that SOXL is moving up in the early trade this morning.
The trigger is outstanding Samsung earnings.
Microsoft Corp (NASDAQ: MSFT ) reported outstanding earnings better than the consensus.
Here are the details: Microsoft Q4 EPS came at $4.74 vs. $4.24 consensus.
Microsoft Q4 revenue came at $90.01B vs. $87.63B consensus.
Microsoft sees fiscal Q1 revenue of $89.85B — $90.95B vs. $89.69B consensus.
Microsoft sees 2026 capex of $175B vs. $190B prior.
This is due to an accounting change of estimating the useful life of datacenters from 15 years to 25 years.
Azure revenue exceeded $100B for the first time.
Microsoft 365 Copilot now has 30M paid users.
Meta Platforms Inc (NASDAQ: META ) earnings disappointed.
Here are the details: Meta reported EPS of $6.18 vs. $7.22 consensus.
Meta reported revenue of $60.8B vs. $60.29B consensus.
Meta sees Q3 revenue of $61B — $64B vs. $63.24B consensus.
Meta sees capex for the year of $130B — $145B.
The stock market is oblivious but prudent investors should pay attention to a drone attack on two ships near Suez Canal in Egypt.