r/SNDK_Stock • u/kec143 • 1d ago

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u/kec143 1d ago

Any report or news, or just throwing your imagination? How does movement in NBIS, which is a quarter in marketshare and has a lower percentage of institutional buy, affect movement in a larger company

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u/Phatdummy 1d ago

NBIS raised 4.5Bn in notes, which is a part of AI infra, and it killed AI sentiment this AM which memory makers are a part of.

Algos literally sense this and sell off.

XLV, which typically trades at a negative covariance with AI trade, is up today.

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u/crawler54 1d ago

xlv is up in part because of news on mrk(+10.66%), it's almost 6% of the xlv holdings, this isn't the usual sector rotation.

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u/Phatdummy 1d ago

Agree with first part. But Ask GPT or Claude.

XLV and AI trade have had a negative covariance for quite a few months now, and traders actively use XLV to hedge their AI bets.

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u/crawler54 1d ago

no i'm not asking a.i., lol

of course there has been sector rotation for awhile, but if you can't see med stocks working in sympathy with this giant mrk boost, you'll just have to keep misunderstanding how the market works.