00:00 Josh
Tech heavyweights Alphabet and Apple post record highs. Yahoo Finance’s Jared Blikre joining us now with a trading day takeaways, Jared.
00:06 Jared Blikre
Got to small got to start with the small fries here. Small caps have been leading and I think investors have just been completely frustrated with small caps over the last few years.
00:23 Jared Blikre
Here’s what’s happened over the last three days, up 7%. Really nice to see that. Here’s the last three years. In fact, let’s just do five years kind of cover most of the pandemic. We had this big high over here. Everybody thought small caps were going to break out record highs. Then we had it again here in late 2024, and we had it again here and we had a steep uh fairly well I mean year to date, check out this chart. This was kind of a steep sell-off, but we’ve come roaring back.
00:46 Jared Blikre
And so, is this going to be the final time when small caps can start leading the market, the general market on a prolonged basis? I’m holding my breath a little bit, but we’ll have to see. Um, I I do have some decent hopes for it.
00:58 Jared Blikre
I just want to show the leaders for these last three days because I think it’s really interesting to see. Number one, everything is green here, so there has been nothing left out. In the upper left, that’s home builders up 8.4%. Then you’ve got Arc uh Innovation Fund. That’s disruption. Then you’ve got XRT is retail. IWC is micro caps. Those are out performing the small caps, which is IWM. So the smallest of the small out performing even the small.
01:21 Jared Blikre
Then we got biotech. We’re going to take a look at healthcare in a second. IPOs, regional banks, chip stocks, which have arguably been the backbone of this entire three uh year rally. Quantum stocks, gambling, transportation, another biotech, value, Mag 7, internet, the list goes on. Um and these are some really nice gains.
01:36 Jared Blikre
So it would be great to see this uh this uh rally continue. I do want to say I was checking the December seasonality. The first half of the month might see a little bit of a pullback, especially with the gains that we’ve seen this year. This week is a great time to be long stocks. Um just be ready for a small pullback in early December possibly, but we should be good by the end of the year back to record highs.
01:54 Josh
Now, I know you started with small caps, but it wasn’t just those pint-sized players, was it today?
02:00 Jared Blikre
No, it was not because we got to talk about King Google on the race to $4 trillion and it is doing it very quickly. First I want to show you here, we’ll get to the Nasdaq and here’s what the Nasdaq 100 has done over the last three days, very commendable. Google up uh Alphabet up almost 12% there, but I’m going to put the market cap figures so we can get a gauge. So 3.917, basically $8 billion away from that $4 trillion level.
02:27 Jared Blikre
And I did a whole segment showing this next chart, so I’m only going to kind of recap it real briefly. But uh this is the timeline to get from one to 2 trillion, two to three, three to four, four to five. And we have it in three different phases. Here’s Nvidia, here’s Apple, here’s Alphabet. You can see Nvidia did it very quickly. Apple was a bit slower. Some of these uh thresholds took years. In fact, all of them took multiple years.
02:50 Jared Blikre
And then Alphabet took, what is that, four or five years um to get that from 1 to two trillion, and then from two to three, it took just uh about a year and two/3. and now we’re talking about 83 days estimated if it keeps on track to get to that 4 trillion from three to four.
03:08 Jared Blikre
So this would be a blistering pace for any big stock to do and Alphabet is just trouncing it. Um and speaking of trouncing, they’ve got some fundamentals uh to prove that in the latest research in the latest uh benchmark reports that compared to Chat GPT and some of the other LLM models. I’m talking about Gemini in particular here. So Google is just really impressive right here.
03:26 Josh
You mentioned healthcare earlier. Yes. Today’s winner by the way, which is a sector I know you’ve been tracking.
03:32 Jared Blikre
Yes. So healthcare over today in the last three days, I believe it has beat beaten tech on most of these time frames. So let’s go to our sector, S&P 500 sectors here. I’ll put the uh net performance back on and there. Winner for today, this is just today. XLV in the upper left, that is healthcare.
03:52 Jared Blikre
Here’s three days. You can see it’s in the number two spot only next to consumer discretionary, that’s Amazon and Tesla. Tesla was really the main driver there. And then here’s the quarter. And uh this quarter, there are only two out performers. Look at XLV, 14%. Number two is down all the way to 2%. Those are the only two that are greater than the S&P 500, which is just barely positive itself. Meanwhile, communication services, uh consumer discretionary, which was a leader over the last three days, and tech, all of these negatives.
04:18 Jared Blikre
So healthcare has really been a story. It’s been downtrodden. Um, I’ll just show you a quick chart here of XLV. Let’s go back five years, cover the pandemic there too. This was painful. Um, that peak in 2024, while the rest of the market was surging on AI hopes, just a huge, huge drawdown. Only in the last couple months have we seen the ETF money start pouring back into the healthcare sector.
04:39 Jared Blikre
One more screen here. I want to show the leaders quarter to date. This is uh the screen that I just showed you, which over the last three days was all green. Got a lot of red in here, uh since October 1st. but in the upper left there, we got two biotech ETFs. That’s where the real action is. Think of think of it as the tech sector for healthcare. Both of those up about 20% Josh.
05:03 Josh
Quick check on crypto?
05:04 Jared Blikre
Let’s do it. And uh I’m going to go back to intraday here. That’s going to be scary. So crypto not having the best day here arguably. Let’s take a quick look at Bitcoin. This is over the last five years. So even on the longer trend uh time frames, we’re looking at a break of some pretty big uh trend lines here. Um and it’s been stair stepping down.
05:28 Jared Blikre
So this is definitely in a short to medium-term downtrend. This is over the last two months where it’s lost 20%. We can broaden that out to three three months. I said before 90,000 was a sell area and it looks like over the last few days that was sold again.
05:43 Jared Blikre
This market is not out of the woods until Bitcoin climbs above 110,000 because the shorts are very interested in it right now. Don’t really have a bottom just yet, I don’t think.
05:57 Josh
All right, thank you, buddy. Appreciate it.
05:59 Jared Blikre
You bet.