Friday felt like a mini-Dec 4th as rate inversion freaked out the markets and we closed at the lows of the day. The price action in the past week tells me a few things:
1) The frantic buying the week prior to last was mostly short covering and opex action
2) All Fed dovishness is priced into the market, and unless they start whispering about cutting rates, they cannot get any more dovish at this point.
3) Tech feels overbought. SMH is near ATHs and while things may not be as bad as feared, they're certainly not ATHs good. Megacap tech are starting to encroach on each other's territory as they grow ever larger. They simply cannot all eat like they were before in their siloed markets now that the only way to grow revenue is to compete w/ one another. Retail investors paying pre-correction prices for the golden age of FANG growth are going to be sorely disappointed.
I feel like the index will just keep chopping and consolidating until earnings. Albeit with more volatility similar to something of a curved top like in 2015. Watch the daily ichi cloud for a bounce this week.
1) The frantic buying the week prior to last was mostly short covering and opex action
2) All Fed dovishness is priced into the market, and unless they start whispering about cutting rates, they cannot get any more dovish at this point.
3) Tech feels overbought. SMH is near ATHs and while things may not be as bad as feared, they're certainly not ATHs good. Megacap tech are starting to encroach on each other's territory as they grow ever larger. They simply cannot all eat like they were before in their siloed markets now that the only way to grow revenue is to compete w/ one another. Retail investors paying pre-correction prices for the golden age of FANG growth are going to be sorely disappointed.
I feel like the index will just keep chopping and consolidating until earnings. Albeit with more volatility similar to something of a curved top like in 2015. Watch the daily ichi cloud for a bounce this week.