Today's" upside continuation" breakout in the S+P 500
is being driven by a considerable amount of short covering,
as bearish investors are now throwing in the towel.
That is an important "new dynamic", worth noting..It's called "Capitulation"
The 1 Year Treasury Note has barely budged today, near a cycle high of 5.42 %
after a lighter than expected Fed watched PCP monthly increase of .3 % this morning.
The bond market continues to price in an additional
two .25 point rate increases for the balance of 2023.
The "risk on" market condition continues to feed on itself,
in everything equities and money managers
who do not want to face "underperformance" notices at their firms
are now being "forced" to buy into the stock market.
The US stock market will simply not go down
to satisfy those who feel it "must "
Instead it mows them down, and continues onward ad nauseam.
And therein lies the problem, with no real solution.
Left unresolved this kind of trading
will continue to feed "deer in the headlight"
as Svi Capital,
a successful Nasdaq 100 trader recently observed.
Road kill in these parts has only just begun.
Have a safe weekend.
SPX 245 PM OPEN 4456.05
THE_UNWIND
WOODS OF CONNECTICUT
is being driven by a considerable amount of short covering,
as bearish investors are now throwing in the towel.
That is an important "new dynamic", worth noting..It's called "Capitulation"
The 1 Year Treasury Note has barely budged today, near a cycle high of 5.42 %
after a lighter than expected Fed watched PCP monthly increase of .3 % this morning.
The bond market continues to price in an additional
two .25 point rate increases for the balance of 2023.
The "risk on" market condition continues to feed on itself,
in everything equities and money managers
who do not want to face "underperformance" notices at their firms
are now being "forced" to buy into the stock market.
The US stock market will simply not go down
to satisfy those who feel it "must "
Instead it mows them down, and continues onward ad nauseam.
And therein lies the problem, with no real solution.
Left unresolved this kind of trading
will continue to feed "deer in the headlight"
as Svi Capital,
a successful Nasdaq 100 trader recently observed.
Road kill in these parts has only just begun.
Have a safe weekend.
SPX 245 PM OPEN 4456.05
THE_UNWIND
WOODS OF CONNECTICUT