Sun Liao@sunxliao
$MRVL is the largest US company not currently in the S&P 500 and that might change VERY soon.
The S&P 500 quarterly rebalance is set for June 19.
The announcement of additions typically drops the Friday before, which puts the next major catalyst on or around June 12 (could even be this Friday June 5).
Marvell now sits at a $254B market cap after Jensen's "next trillion-dollar company" comment at Computex.
That makes them the most obvious S&P 500 addition candidate in the market right now IMO. NFA.
When a name gets added to the S&P 500, every passive index fund tracking the benchmark has to buy it.
The SPDR $SPY ETF alone has over $500B in assets.
Vanguard's $VOO has another $1.3T.
Then add every pension fund, 401k target date fund, and institutional allocator that benchmarks against the S&P 500...
Combined, we're talking about trillions of dollars in passive capital that has to add $MRVL to its weighting overnight.
The buying doesn't care about the entry price, valuation, or technical setup...
It just has to happen because the index says so...
If we get any dips... I might buy more. 😂
Doing a deep dive soon with Startup.io indicator suite users as well.