We Salute the Sector, Not the Stock

The NVIDIA-versus-the-world dynamic seems like it is even more at play today, to kick off the new month. 

Specifically, as I write this shares of NVDA are higher by 3% while the semiconductor index in the SOX is down by more than 1%. The Dow is down by about 400 points amid a plethora of broad market reversals lower from the open, when it seems as though bulls would force the issue for another squeeze higher as the likes of AMC and GME spiked. 

And while those two meme stocks are still green as I write this the rest of the market, between transports, banks, small caps, homebuilders, even oil, are all sharply lower. The oil breakdown took me by surprise, to be sure, but it is impressive to see the gold and silver metals green and not trading like imminent deflation is in store, even with rates down. 

Also note ARKK was soundly higher this morning and is not almost back to flat, as it still has issues holding even a modest relief rally after its recent down move, 

Overall, we have a tons of cross-currents in today's tape as market players are still trying figure out if we are headed into more inflation or, instead, a deflationary recession. What we can say with more certainty is that the tech/growth stock rally is now about as narrow as it can be, with NVDA getting all the hype but the rest of its sector acting exhausted, at best.