Technology is Holding the Key to the Next S&P 500 Move

Going into Friday, I was still sticking to the bullish S&P 500 outlook. As the index declined, are the prospects of higher prices gone? Not at all, and today’s analysis will examine the signs that still lean bullish despite the precarious technology position.

Despite the S&P 500 closing below the line connecting the early June highs, continued unemployment claims rising on the state level (don’t forget about those rising ones under the federal pandemic programs either), the fate of the $600 weekly addition to unemployment benefits expiring at the end of July, or the U.S. – China confrontations.

On Thursday, I’ve laid out the market’s sensitivities this way:

(…) as strange as it might sound, the stock market isn’t about the real economy struggles these weeks. All eyes are on the stimulus and vaccine hopes (whatever one imagines under the latter term), not on the corona case panic and hyped

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Xi Jinping’s trillion-yuan baby, the Star Market, is poised for the next spurt of growth. Here’s why

Ji Xinhua is walking on clouds. Two months before his 41st birthday, his company UCloud Information Technology overcame the hurdle that had tripped up dozens of larger Chinese companies and driven them half a world away to New York to raise funds.

UCloud, which helps customers store computer data in the cloud, became the first company with a dual-class shareholding structure approved to list on China’s Star Market. UCloud’s shares, offered at 33.23 yuan (US$4.73), more than doubled during their trading debut in Shanghai and soared to a record 115 yuan by the 16th trading day.

That made Ji, who owns 50.8 million UCloud shares, or 12 per cent of the company, a multimillionaire, one of more than 130 minted by the Nasdaq-style market in the 12 months it’s been operating.

“We may have opened a floodgate for other promising tech companies to access funding on the domestic market,” Ji

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Do Insiders Own Lots Of Shares In Hebron Technology Co., Ltd. (NASDAQ:HEBT)?

If you want to know who really controls Hebron Technology Co., Ltd. (NASDAQ:HEBT), then you’ll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, ‘Don’t tell me what you think, tell me what you have in your portfolio.

Hebron Technology is not a large company by global standards. It has a market capitalization of US$264m, which means it wouldn’t have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let’s take a closer look to see what the different types of shareholder can tell us about Hebron Technology.

See our latest analysis for Hebron Technology

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Is It Time to Rotate Out of Tech ETFs?

Technology stocks and ETFs have been star performers of this year. The coronavirus outbreak could not take the sheen out of this sector, rather added more to it. Social distancing norms enacted globally to mitigate the spread of the virus compelled people to stay at home, binge on online shopping and work as well as learn from home.

As a result, the demand for clouding computing, video gaming, online payment services as well as shopping and cyber security facilities surged. U.S. technology is the “longest ‘long’ of all-time,” per the findings in Bank of America’s monthly fund manager survey, as quoted on CNBC. As much as 74% of fund managers found U.S. technology and growth to be the “most crowded trade,” — the highest level ever in BofA’s monthly survey.

No wonder, Technology Select Sector SPDR Fund XLK is up 16.5% this year versus the 0.5% dip in the S&P

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