On Friday, the market opened strong only to suffer a powerful intraday reversal before recovering somewhat. This created a “doji” on the S&P 500 which is a sign of “indecision” and a potential “trend reversal indicator” according to the technician…
Monday’s trading day was all about Tesla (TSLA) which rose 12.66% on 3x average volume, adding $130 billion in market cap on news that Hertz is going to buy 100,000 cars for $4.2 billion over the next 14 months. Obviously…
The great hedge fund manager David Tepper of Appaloosa Management gave an extended interview [CNBC Pro Subscription Required] to Scott Wapner on Friday’s Fast Money Halftime Report on CNBC. The key takeaway in my opinion is that interest rates will…
It was exactly a week ago (Thu 10/14) that the futures were ramping up for what turned out to be a character changing day. Over the weekend, Callum Thomas posted the above chart on seasonality in his widely followed “Chart…
The most important event of the week was the Fed Decision on Wednesday afternoon. While the Fed did not make any policy changes (the Fed Funds Rate continues at 0% as well as $120 Billion/month in asset purchases) they did start to talk about inflation raising the possibility of tapering asset purchases and raising interest rates down the road. That was enough to create a dramatic reaction in financial markets.
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I’ll never forget it. It was 11:50am Friday March 26, 2021. I was short stocks, mainly tech stocks, and doing quite well when, all of a sudden and out of nowhere, stocks started to rip higher. From breaking down they went to exploding higher without rhyme or reason. I believe the NASDAQ ripped higher by ~2% in that time period into the close
The catalyst for Wednesday’s selloff was a hotter than expected April CPI Report. Overall inflation came in at +4.2% year over year and +0.8% month over month. Core CPI, which excludes food and energy, was +3.0% year over year and +0.9% month over month.
Most analysts have been characterizing the current rotation in markets as from Growth to Value. However, while on Monday the S&P 500 Value ETF (IVE, -0.02%) outperformed the S&P 500 Growth ETF (IVW, -1.95%), on Tuesday growth (-0.43%) outperformed value (-1.35%). This calls into question the Growth to Value narrative.
A very important divergence is taking place in markets between the tech led NASDAQ and the broader market as represented by the S&P 500.