00:00 Speaker A
The S&P 500 and the NASDAQ notched fresh records with big tech set to take earnings spotlight. Joining us now with the trading day takeaways is Yahoo Finances Jared Blikre. Jared.
00:09 Jared Blikre
Josh, you remember the Mag 7?
00:11 Speaker A
Yes.
00:12 Jared Blikre
All right. Approaching. If you were to index all of them equal weighted, yes, near a record right now. You can read the fine print. And I'm going to show you the Mag 7 heat map here. And so Nvidia and Microsoft have been hitting record highs recently. This is today's price action. Let me just throw on what has happened since that April 8th bottom. And I have a little bit more than the Mag 7 here. I also have Berkshire Hathaway and Eli Lily. Berkshire not doing too well since Warren Buffett announced his retirement, but that's a separate story. So, as I said, Nvidia up 18% since those April 8th lows, Microsoft up 6.2%, bunch of record highs since then. If I throw on the equal weight, I can show you Mags, here we go. MAGS as a proxy for the Mag 7 ETF. And I'm going to have to put a one-year chart on to show you that the record highs are back here in December. And uh, what a story here that we haven't even talked about Mag 7 dominance in a while because it just hasn't been that big of a story. And of course, the stocks are bifurcated. Tesla's only up 2%. Meta hasn't gained that much ground, but Alphabet had a huge day, so did meta, and uh, just interesting to note what's been working in the market recently. One more small point on this, uh, the small stuff today did not work that well. Small caps underperformed. Also, I've been looking at meme stocks, uh, that those have been outperforming recently, but not today. So interesting outlier day.
02:00 Speaker A
Dollar making moves. What do we make of that?
02:03 Jared Blikre
Yes, not only the dollar, but also rates. And they've been going to the downside. So let me show you a US dollar chart. Um, and by the way, when they go in opposite directions, that's actually not the greatest thing because we saw that around liberation day, and that was when the whole world was selling US dollars and then also selling bonds. But here's a two-month chart of the US dollar index. I'll change that to a year to date. You can still see it's underwater by about 10 and a half percent. And these lows here are multi-year lows. So it's pretty significant. There's huge positioning to the downside in the dollar, so that means you could get a shorts covering rally, but I think the uh, the weight of the evidence is pointing to more down. Also, I just taped an episode with uh, Dimitri Cofinis of the Hidden Forces podcast today for Stocks and Translation. He had something to say about dollar, the US dollar being decentralized. Let's take a listen.
03:18 Speaker B
The dollar is the most decentralized currency on the planet.
03:22 Jared Blikre
Because we got cash and a lot of people use that cash.
03:26 Speaker B
We have cash. Like people do cash and also lots of third parties that exist outside the Federal Reserve banking system issue dollars. Lots of people contract in dollars, and these this is all the source of dollar demand. And And so when a when a foreign bank that's not under the jurisdiction of the of the Federal Reserve issues a dollar-based loan, what it's doing is issuing what we know is euro dollars. And what are stable coins? They're euro dollars. So what we're really seeing is the expansion of the euro dollar market.
04:10 Jared Blikre
We got into a lot of interesting stuff there. So US dollar most decentralized currency in the world, maybe open question mark, but also euro dollars painting the picture, kind of the predecessor of stable coins. We map it out, so catch that our episode tomorrow, Tuesday, July 22nd.
04:31 Speaker A
It's a Monday. Let's talk crypto.
04:33 Jared Blikre
You bet. And let us do that. Ether is nearing $4,000. Ether being the cryptocurrency and got another another nice pop today. It is not cleared resistance. Uh, this is since, uh, June 8th, well, this is since some bottom. Uh, let's take a look at today's price action up 25 basis points or so. Let's take a look at the one year. Yes, right up against these highs, but this is not the first time we've seen those highs. Let's put a six-year chart on this and you can see we are just at the upper end of this multi-year range. So you breakout from here, I said it, uh, last week, probably an easy bet that we can at least test those 4500 all-time highs from what is that, late 2021. But Ethereum has really been taking over a lot of market share from Solana. Definitely been reflecting in the price here. And I think I mentioned this last week, but Ripple against all odds, Ripple making all-time highs here. I thought I counted it out as down in 2020, but it has bounced back as well.
05:42 Speaker A
What else is on your radar in that sort of old finance space?
05:49 Jared Blikre
Polly market is re-entering the US and I was just using their betting features on Trump firing Powell last week. So they also do sports betting. They they just bought a very small exchange, not very well known, but that's going to give them a foothold into the back into the United States, and it looks like this is after some troubles they had with the Department of Justice. Uh, but that's in the rearview mirror. Guess what? Brand new administration, new attitude towards a lot of these things, and that's what's going on.
06:25 Speaker A
New day. Thank you, Jared. Appreciate it.
06:29 Jared Blikre
Pleasure.
