Week 29, 2024: Explaining the CrowdStrike Fiasco. (Now with Stock Picks inside!)

CrowdStrike is a cloud security provider to a whopping 62 companies in the Fortune 100.

Hello friends,

We’re back with new unbiased data for this week of the US stock market.

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Today I’m going deep in on the CrowdStrike failure (CRWD 0.00%↑) and how it affected the stock market and future implications.

Having a degree in both computer science and applied mathematics I’m in a unique position where I can explain to you in simple terms what happened with CrowdStrike, what the companies did wrong and what CrowdStrike did wrong.

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This week in The Tao of Stock Trading

• The CrowdStrike failure and how it affected the stock market. A deep dive on how badly legacy companies are managed.

• Changed the way we present the data from our quant. Many of you said the tables were not usable, overwhelming, so I personally choose and explain possibly emerging stocks for you in 9 categories.

• Now, instead of giving you data tables and a few picks, I’m explaining in detail why these picks are good.

• Since we’re waiting for the market correction to launch my ETF, I’m focusing on posting top educational content and masterclasses from experts like Alejandro Yela. Aiming at 2-3 pieces of content per week now.

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Now, let's dive into this week's newsletter...

S&P500 Heatmap over the last week

Heatmap explained

Excel data

Market Summary: Top 10 Gainers/Losers and Sector Trends

Top 10 Gainers

1. Warner Bros. Discovery Inc ( WBD 0.00%↑ )

   • Market Cap: $17.56B

   • Sector: Communication Services

   • Industry: Entertainment

   • Change: +17.16%

2. D.R. Horton Inc. ( DHI 0.00%↑ )

   • Market Cap: $46.79B

   • Sector: Consumer Cyclical

   • Industry: Residential Construction

   • Change: +13.07%

3. Solventum Corp ( SOLV 0.00%↑ )

   • Market Cap: $9.44B

   • Sector: Healthcare

   • Industry: Health Information Services

   • Change: +11.43%

4. Unitedhealth Group Inc ( UNH 0.00%↑ )

   • Market Cap: $451.06B

   • Sector: Healthcare

   • Industry: Healthcare Plans

   • Change: +10.52%

5. Huntington Bancshares, Inc. ( HBAN 0.00%↑ )

   • Market Cap: $17.80B

   • Sector: Financial

   • Industry: Banks - Regional

   • Change: +9.75%

6. Cboe Global Markets Inc. ( CBOE 0.00%↑ )

   • Market Cap: $17.69B

   • Sector: Financial

   • Industry: Financial Data & Stock Exchanges

   • Change: +8.93%

7. Discover Financial Services ( DFS 0.00%↑ )

   • Market Cap: $31.27B

   • Sector: Financial

   • Industry: Credit Services

   • Change: +7.99%

8. Henry Schein Inc. ( HSIC 0.00%↑ )

   • Market Cap: $8.52B

   • Sector: Healthcare

   • Industry: Medical Distribution

   • Change: +7.97%

9. EPAM Systems Inc ( EPAM 0.00%↑ )

   • Market Cap: $10.16B

   • Sector: Technology

   • Industry: Information Technology Services

   • Change: +7.96%

10. Regions Financial Corp. ( RF 0.00%↑ )

    • Market Cap: $17.17B

    • Sector: Financial

    • Industry: Banks - Regional

    • Change: +7.91%

Top 10 Losers

1. Charles Schwab Corp. ( SCHW 0.00%↑ )

   • Market Cap: $128.85B

   • Sector: Financial

   • Industry: Capital Markets

   • Change: -17.64%

2. Dominos Pizza Inc ( DPZ 0.00%↑ )

   • Market Cap: $18.58B

   • Sector: Consumer Cyclical

   • Industry: Restaurants

   • Change: -17.77%

3. Advanced Micro Devices Inc. ( AMD 0.00%↑ )

   • Market Cap: $254.28B

   • Sector: Technology

   • Industry: Semiconductors

   • Change: -16.54%

4. Vistra Corp ( VST 0.00%↑ )

   • Market Cap: $29.05B

   • Sector: Utilities

   • Industry: Utilities - Independent Power Producers

   • Change: -16.27%

5. Micron Technology Inc. ( MU 0.00%↑ )

   • Market Cap: $163.95B

   • Sector: Technology

   • Industry: Semiconductors

   • Change: -14.44%

6. Lam Research Corp. ( LRCX 0.00%↑ )

   • Market Cap: $138.99B

   • Sector: Technology

   • Industry: Semiconductor Equipment & Materials

   • Change: -14.27%

7. Applied Materials Inc. ( AMAT 0.00%↑ )

   • Market Cap: $199.41B

   • Sector: Technology

   • Industry: Semiconductor Equipment & Materials

   • Change: -13.62%

8. Constellation Energy Corporation ( CEG 0.00%↑ )

   • Market Cap: $66.47B

   • Sector: Utilities

   • Industry: Utilities - Renewable

   • Change: -12.82%

9. Super Micro Computer Inc ( SMCI 0.00%↑ )

   • Market Cap: $52.69B

   • Sector: Technology

   • Industry: Computer Hardware

   • Change: -12.44%

10. Enphase Energy Inc ( ENPH 0.00%↑ )

    • Market Cap: $16.16B

    • Sector: Technology

    • Industry: Solar

    • Change: -11.63%

Sector Trends

1. Communication Services: Mixed performance, with Warner Bros. Discovery showing strong gains (+17.16%), while others like Comcast and Alphabet had more modest changes.

2. Consumer Cyclical: Strong performance in Residential Construction (D.R. Horton, PulteGroup, Lennar), but weakness in Restaurants (Dominos Pizza) and Apparel (Ralph Lauren).

3. Healthcare: Generally positive, with notable gains in Health Information Services, Healthcare Plans, and Medical Distribution.

4. Financial: Regional Banks and Asset Management firms showed strong gains, but Capital Markets (Charles Schwab) experienced significant losses.

5. Technology: Highly varied performance. Information Technology Services showed gains, while Semiconductors and Semiconductor Equipment & Materials experienced substantial losses.

6. Industrials: Mixed performance, with gains in Airlines and Aerospace & Defense, but losses in Specialty Industrial Machinery.

7. Energy: Positive performance across Oil & Gas Equipment & Services, E&P, and Midstream.

8. Utilities: Generally negative performance, particularly in Renewable and Independent Power Producers sectors.

9. Consumer Defensive: Mixed performance, with gains in Packaged Foods but losses in Beverages and Household & Personal Products.

10. Real Estate: Limited data, but REIT - Residential showed modest gains.

11. Basic Materials: Mixed, with losses in Copper and Specialty Chemicals, but gains in Agricultural Inputs.

Please send feedback and ideas using comments or email. I answer emails personally.

And, as always — stay informed — and do your own due diligence,

Jack from The Daily Moat

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