Bulls Hold Momentum as Crude Oil Taps $90, META Maintains Muse AI Rally

SPEAKER_1 (0:00)

Let's bring in Kevin Green, Senior Markets Corresponder, right away to help set up the action today. All right, KG, we're sitting at a record on the NASDAQ. It feels like we're in a bit of a holding pattern right now. Let's start out with your big picture take.

Kevin Green (0:14)

Well, I mean, from a technical standpoint, what we did see yesterday was a very strong push to the outside, especially when it comes to tech. We have seen now the NASDAQ, especially the NASDAQ 100 breaking out.

To the upside, and also if you're looking at the MAG-7 itself, we're starting to see some really good traction there for a lot of these names. Meta breaking above the $660 level. Yesterday, obviously seeing a really strong follow through over 11% move to the upside. And a lot of these areas of the market, the pockets of the market have been consolidating for about five months, even more than that, if you're looking at the MAG's ETF, that has actually been consolidating since November of last year. So we are getting a little bit of a breakout. I think yesterday was a little bit more mechanical in nature, Diane, obviously we had that quarterly expiration on Friday. Usually we do see a little bit of volatility on that Monday and Tuesday, but it seems like there's a lot of institutions that have now rotated back into some of the larger cap and mega cap names. And that's why we saw kind of that massive push to the upside. Now, let's see if we actually have a follow through day today. I think we will have some headlines being made, obviously, out of the UN. And we are seeing some headlines coming from the Middle East as well. Could that be enough to really try to break us higher for the NASDAQ, not only for the NASDAQ, but also for the S&P 500 to do the same and potentially notch a new record of that?

SPEAKER_1 (1:28)

Okay, let's talk a little bit more about Meta. Jumped 11% yesterday. AMD obviously was also off to the races.

For Meta, part of that has to do with Muse, right? Jumping to the top of the App Store. Are we looking for a follow through for Meta today?

Kevin Green (1:44)

We are seeing a little bit of a pull back, but you would love to see a follow through day for Meta. Now, if you're kind of looking at the technical setup, once again, on the weekly chart, it actually does look very healthy. Last week, we actually had a candle that broke through a downtrend, a line that was actually intact since September of last year, so that was obviously a really good sign here. A follow through day today would really kind of mean if we could close above 760, I think that would be an ultimate win for Meta, especially if it's able to hold that level throughout the remainder of the week and then try to retest the highs of $785.

If you're looking at the communication services sector as a whole, it's pretty much Meta as well as Google Alphabet, those are going to be the two that are leading the way. If you're looking at the technical setup for let's say the XLC for that matter, you can also make the case that it is trying to ramp up and make new highs. Meta is doing a phenomenal job. Obviously, Muse AI did overtake Chat GPT as the number one free iOS app. That was as of last Friday, they had over 730,000 downloads for the first five days. Then on Monday or yesterday, they had 2.5 plus cumulative downloads by Monday. Now, that's according to Sensor Tower, so they are actually seeing a significant amount of traction. We also have the MetaConnect Conference, that's going to be on September 23rd and 24th, so Wednesday and Thursday.

Market's also anticipating maybe some news and some new updated tech coming from that conference as well. They've had a lot of the fundamentals really at their backs over the last, let's say, month or so. Technically speaking, you are seeing, once again, a breakout to the upside. Let's see how long it's going to last.

SPEAKER_1 (3:20)

All right. Let's talk about where Crude Oil sits. We are pulling back this morning. We were initially a little bit higher. Now we're pulling back below triple digits for Brent Crude. We've already crossed below triple digits for WTI from yesterday through today. We're sitting, approaching $93 a barrel on West Texas Intermediate.

How are you reading the tea leaves today?

Kevin Green (3:42)

You are seeing a pullback here. There's several headlines that are really pushing crude oil to the downside. There is a headline stating that Iran is signaling that they could actually open up the Strait of Hormuz within seven days if the US does remove its blockade on the country.