Small-cap trade, Nvidia vs. copper, bitcoin: Market takeaways

Stocks (^DJI, ^IXIC, ^GSPC) are in focus with 171 S&P 500 companies prepare to report earnings this week, with investors particularly focused on Big Tech results from Amazon (AMZN) and Microsoft (MSFT). Yahoo Finance markets and data editor Jared Blikre joins Asking for a Trend to discuss the top three trading day takeaways including the small-cap versus mega-cap trade dynamics, copper's (HG=F) performance compared to Nvidia (NVDA) stock, and former President Trump's talk of a bitcoin (BTC-USD) "stockpile."

For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend.

This post was written by Angel Smith

Video transcript

Investors playing the waiting game today with the major indices and a little change and join me now with the top trading day takeaways.

Yahoo Finance Markets and Data Editor Jared Blier.

Jared.

Thank you, Josh.

Guess what Big is better or is greater than small once again.

And this is kind of a throwback to what we were looking at two weeks ago.

When we saw the mega caps really dominating.

We didn't worry about the small caps.

Uh, things changed as we know pretty quickly over the course of a few days.

First, I wanna show today this is the NASDAQ 100 in purple.

Here, you can see it's just barely positive.

This is a flat line, that yellow dotted line.

And then we have the Russell 2000.

The Russell 2000 way down here, down 1% NASDAQ in positive territory.

But let me show you, in contrast to the last month, and I think this is interesting.

So the NASDAQ 100 is actually, uh, underwater and you can see right around July 9th.

That's when we had a shift of fortunes here.

We saw the Russell 2000 take off, and I've I've sliced and diced this a couple of different ways.

I wanna show you large value versus small value because we're just looking at large versus small.

Overall, you'll notice that both of these lines are positive.

So the Russell 2000 value that small cap is up there, and then we have the large cap value that's still in the green.

Then when you take a look at large cap growth versus small growth, that's when you start seeing things kind of break off and diverge.

You've got the, uh, the large caps all the way down here.

You've got the small cap growth in the green.

So that's where we're really seeing the difference here.

How important Big tech earnings this week.

Jared, I got Apple.

I got Amazon Microsoft Meta.

How important is that for the market?

You know, I think they're still very important.

The good news about all of this we've seen the fact that the rest of the market can catch up.

Now, a word of warning.

We did get a Morgan Stanley note saying that it wasn't just market rotation we saw over the last two weeks.

There was a little bit of, uh, de grossing and also deleveraging.

That means absolute positions are being wound or dialled back a little bit.

So maybe a little yellow caution flag there, but nothing.

Nothing too big to get worried about.

Number two.

All right, we got copper versus versus NVIDIA, and we were talking about Doctor Copper.

I think it was last week or two weeks ago, and I'm gonna go back to my comparison screen here.

Uh, interestingly, copper is at the 200 day moving average.

Uh, this over here was a record high, and by the way, we're only going back one month.

Still, that was a record high in copper, not a record high in NVIDIA, but it is down 20% from there.

And you can see NVIDIA down a very similar amount.

Now, here's where the comparison falls apart a little bit.

You look at a year to date.

Uh, copper is way down here because you can barely see, uh, NVIDIA moving off or excuse me?

You can barely see copper moving off because they move in different amounts.

So a lot of people making this comparison, but I think you have to make it with the, uh same Y axes.

If you have to adjust the Y axis and show this one up here, it's just kind of not the same concern.

Is it worth looking at the pair, Red Metal and Jensen HG's company?

I think it's an interesting the thesis, and we need to keep in mind the global copper supplies and you know the industrial reaction to all these things.

But at the end of the day, Doctor Copper is very important.

It's a China story.

It's important for a lot of reasons.

So I would watch this because it's copper.

Not necessarily because of the relationship to NVIDIA.

All right, find out Jared blicker point.

All right, guess what?

We're going to talk about the last thing we talked on Friday, and if you remember what that is Oh, there you go.

Bitcoin story.

And so Trump came out Saturday.

Impassioned Flea for Bitcoin is everywhere to get behind him in his campaign, but he didn't call what's being discussed.

A strategic Bitcoin reserve.

He's calling it a stock pile.

Um, reserves.

It has certain connotations.

You know, we have a strategic petroleum reserve.

Maybe it sounds a little bit too official.

Trump's not going there just yet.

He's calling it a stockpile, but nevertheless UM, 200,000 Bitcoins the US currently has in possession.

He's saying, Let's just keep those that will be our stockpile.

Here's where it gets interesting.

The rest of the world has to gameplay.

If the US has a Bitcoin reserve or stockpile, the rest of the world needs one, too.

So I think there could be a bit of game playing a game playing here, and you're gonna see the fortunes of Bitcoin kind of rise and fall.

Probably with Trump's election prospects isn't so.

Isn't stockpile like a reserve?

Yeah, you know, that's a that's a good point.

So when we talk about the Strategic Petroleum Reserve, I think that's it gets back to that official connotation.

And, uh, that's probably something that Trump is trying not to step into just yet.

But that would be a point of leverage for the future.

So right now we're just gonna call it a stockpile and, uh, be happy that it's in the national discussion, I guess.

Right, Jared.

Thank you, buddy.

Appreciate it.