The Goldman Guide: Erratic Market & An Exciting NASDAQ AI Play

Written by Rob Goldman   

In this midweek edition, we describe expectations of a near term erratic market and introduce an under the radar yet under accumulation, diversified NASDAQ AI play.

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The Goldman Guide

  • VOLUME 8
  • ISSUE 11
  • March 7, 2023

INSIDE OUR 10 MIN PODCAST:

  • The Stock Market Today
  • Up, Down and Sideways
  • A Diversified AI Stock

INDICES & CATALYSTS

KEY TAKEAWAYS

  • If you like yo-yos, you must enjoy this market. And it is likely to continue.
  • Volume could soon subside making drifts and movement more erratic
  • Seems like anything in AI is in play. This stock has rocked in 2023, but is still under the radar

KEY FIGURES

Fwd P/E RSI
DJIA 17.3 42.0
S&P 500 18.0 45.5
NASDAQ 100 24.0 50.6
RUSS 2K 21.2 44.3

Corrections and
Double Bottoms

Our apologies for the lateness of this week’s edition. We were sick over the weekend. Still, onward and upward. Well at least onward. Fed Chairman Powell helped push us downward. And those were just his words. Wait til the actions come hard and fast.

Next up is the CPI info in six days. I don’t portend to know what it will look like. But, if recent history is any indication, the market will move sharply, one way or another. So, please be prepared.

There has been little movement for the past several trading sessions despite the sharp moves in between. Major outflow increases, bearish stances, are not helping. Nor is the word of some market strategists. One in particular called a scary market ahead a few days after we did last month. Yet, this week he said the tea leaves tell him the short term could be a big rally, followed by the poor market conditions. Figures that the next day stocks drop big time.

Please…have somewhat of a consistent stance and don’t always try to be tactical and time the market.

In the meantime, expect volumes to begin to drop making things more erratic than usual. It’s just part of the game, so to speak.

Speaking of game, AI is clearly in play and we have one that has rocked so far this year. But, it is still under the radar, under accumulation, and is 30% below its year high, so there is nice upside to this diversified, SaaS business that trades at only .5x sales. Check it out….

Have a good day!

The Market Today

Notable Numbers

AAII Sentiment Survey (figures rounded)

Current Last Week Long Term Avg
Bullish 23% 22% 38%
Neutral 32% 40% 32%
Bearish 45% 39% 31%
Bearish Percentage is highest since 12/28/22.
This occurred just before the recent mini-rally…
Still…we don’t view it as a catalyst at this stage

Random Thoughts…

With so many weeks of outflows, are we going to start seeing notable drops in volume?

Is investing via AI set to displace Quant investors?

Will an AI-based ETF be filed later this year?

Has a large swath of investors evolved into traders?

How is that impacting rallies and down days?

Are market strategists fickle?


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