$E-mini S&P 500 Futures(JUN4)(ESmain.US)$ Last Friday saw some major bullishness in the major indices. This came after some very worrying premarket price action. A huge gap down in premarket trading immediately followed the release of US employment and wage data. The S&P 500 initially fell over 1%. Things were looking very bearish. Where Did the Bullishness Come From? During intraday trading, the S&P finished over 1% in the green, completely reversing the ver...
Sector Rotation Tech has been killing it in the market this year, thanks to the artificial intelligence boom. The tech sector has lifted the entire market while other sectors have greatly underperformed. Occasionally, an overheated sector will begin to cool off as investors rotate their capital into underperforming sectors in expectation of a broadening rally or a change in the economy. Even the NASDAQ announced a special rebalancing later this month, ...
SpyderCallOPSilverbat:
A soft landing is what I see playing out on the economic data. I think the market is already pricing in the soft landing possibly. But I'm not certain on that. One thing that could be a worry is if inflation falls too fast and for too long. this would be very bad for any economy.
SpyderCallOPSilverbat:
Who knows. Europe, UK, and Australia paused and then hiked again. They haven't signaled a pause yet. However, the Fed has signaled a decrease in interest rates going further, so it will take a big increase in inflation to change that narrative. But anything can happen in these crazy markets
Narrative vs. Sentiment The narrative in world markets changes regularly. These narratives control market sentiment and essentially direction of price action within the markets. Market narratives range from a global pandemic, war, skyrocketing inflation or interest rates, slowing economic data, recession fears, or even improving economic data. Instances like these occur on a regular basis, and they can change the direction in markets. Ge...
SpyderCallOPiamiam:
right. that is why home builders numbers are up. they are trying to catch up the the demand. this should effect housing prices. Actually this past economic data showed that housing prices fell more last month than they have fallen in over 30 years. Powell said there should be a housing correction but since the pandemic housing prices have only gone up. This is the first drop in a while and it is a big one. Maybe this is just the tip of the iceburg. I cant call this one but i will be ready for the ride which ever direction it goes.
iamiamSpyderCallOP:
I think that's misleading because my area is building houses like crazy and my home value keeps going up. there is no drop on prices here only increases. what that number is reflecting is an exodus from large population centers like California, new York, illinois to lower one's. the problem we have is no one wants to sell here.
There are several instances when a positive catalyst for one security can be a negative catalyst for another type of security. This can happen for many reasons, such as macroeconomic factors, competition, or intra market mechanics. Here are a few examples of inverse trade pairings. Competition Go Long: $$Advanced Micro Devices(AMD.US)$ Go Short: $$Intel(INTC.US)$ These two are in the semiconductor space. This sector is in full rally mode, so going short on either of t...
What Happened to the Recession Fears?
Last Friday saw some major bullishness in the major indices. This came after some very worrying premarket price action. A huge gap down in premarket trading immediately followed the release of US employment and wage data. The S&P 500 initially fell over 1%. Things were looking very bearish.
Where Did the Bullishness Come From?
During intraday trading, the S&P finished over 1% in the green, completely reversing the ver...
Which Sector Will the Rotation Turn to Next?
Tech has been killing it in the market this year, thanks to the artificial intelligence boom. The tech sector has lifted the entire market while other sectors have greatly underperformed.
Occasionally, an overheated sector will begin to cool off as investors rotate their capital into underperforming sectors in expectation of a broadening rally or a change in the economy.
Even the NASDAQ announced a special rebalancing later this month, ...
Are We Getting Another Squeeze Moment Between the VIX and SPY?
VIX had a major gap up overnight with a big spike in volume. SPY opened up today with a big gap down in price as investors shorted the market.
Is it a good time to short the market after this huge rally? Or will the shorts that pushed the VIX up overnight get squeezed again like they did last April.
Don't fomo or pan...
What Will Be the Narrative for the Second Half of the Year?
The narrative in world markets changes regularly. These narratives control market sentiment and essentially direction of price action within the markets.
Market narratives range from a global pandemic, war, skyrocketing inflation or interest rates, slowing economic data, recession fears, or even improving economic data. Instances like these occur on a regular basis, and they can change the direction in markets. Ge...
To Go Long or To Go Short?
Competition
Go Long: $ $Advanced Micro Devices(AMD.US)$
Go Short: $ $Intel(INTC.US)$
These two are in the semiconductor space. This sector is in full rally mode, so going short on either of t...
May the force be with you
No pressure Apple, no pressure
$Apple(AAPL.US)$$Cboe Apple VIX(.VXAPL.US)$
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