Prices in the stock market are divorced from fundamentals

The Dow has dropped over the last two weeks while the S&P moved sideways. The Nasdaq Composite gained over the same period but this is where prices are simply out of wack compared to earnings. Details are just below. An overwhelming majority of the volume in the stock market comes from machine trading. I’m guessing that these machines have not been programmed for the soon-to-come bearish trend. If I’m right, the investors behind the machines will be taken to the cleaners.
 
My Semiconductor sector gained an amazing 8.3% in July (i.e., 3% is an unusual high gain). Here are all the stocks that make up this sector followed by their earnings in the last quarter and their earnings over the last three quarters. All but NVDA below were colored black at Investors.com meaning that they were well under average: INTC 3% 3% MU -25% 16% AMAT 17% 6% NVDA 39% 26% MRVL -92% -95% ASML -3% -21% SWKS -7% -15% TSM -14% -15%.
 
Here’s the chart of the S&P 500:

sp500

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