Gurshawn Jagpal

Major indexes and gold went down due to rising treasury yields and oil prices. Since Friday, financial conditions have tightened a bit: stocks down, yields up, dollar up as Fed Chair Kevin Warsh seemed more hawkish (more inclined to increase interest rates).

Semiconductor names rose today. I believe money flowed from traditional names like Google, Microsoft, Meta, etc. into semiconductor names today.

I think money flowed due to the higher earnings from Nvidia last week. Tesla stock rose due to robotaxi excitement which caused Uber stock to fall. I am going to watch Uber stock to see if Robotaxi news will cause further downside. Cybersecurity stocks are rising, in my opinion, due to higher expected demand caused by the growth of AI.

My game plan for the week is to see if treasury bond yields keep rising. Since treasury bond yields are the benchmark for risk-free interest rates, any increase would pressure risk assets. Dell and Broadcom earnings are going to come this week. However, Dell I believe is priced for perfection. In my opinion, Broadcom stock might rise due to strong demand in custom AI chips. Lately, Broadcom stock hasn’t risen much in the past few months.

These are stocks that I am looking at:

I bought more Take Two Entertainment ($TTWO).

• It fell 6% today. I added TTWO for myself because I think GTA demand is stronger than what the market expects. That is my position, not a recommendation.
• I have been following accounts on social media, and a lot of people seem very interested in the new game. My theory is the large players are trying to shake out retail investors (This is my theory, not a proven fact).

Howmet Aerospace ($HWM) stock fell 7% as SpaceX will make their own gas turbine blades.

• However, I believe the stock sold off due to their high multiples of 50 X PE.
• I think the sell-off is overdone.
• I may add to the name as the stock is at 200 MA and the RSI is below 30.
• In the past three years, this has been the time to add.
• The company’s commercial and defense aerospace has been doing well.
• They will most likely still be selling to companies like Mitsubishi Heavy and GE Vernova
• I believe that their strong commercial and defense aerospace will make up for any loss caused by the SpaceX news.

Chart from stockchart.com

PG&E (Symbol $PCG).

• I was surprised to see the stock fall by 20%.
• Most of us Californians pay thousands of dollars in True-up charges, so I had a hard time understanding how their stock can fall.  
• The theory for buying utility stocks is that they are low risk and they pay high dividends.
• However, PG&E disproved that theory.
• It dropped as the proposal to block insurance companies from suing utility companies was dropped.
• I am steering clear from this stock; I reasonably can’t estimate the risk from investing in this name. I feel more comfortable looking at other names.  
• This company has gone bankrupt multiple times in the past.

Working notes. I used AI only to clean grammar. The views are mine. Not investment, tax, or legal advice.