Market Review After Today's Scolding From The G-Man.
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Peeking Out From Under The Desk
Is it really still only Wednesday? Tuesday we had the runup to Microsoft earnings - big ol selloff before the close, solid numbers and the stock down some more, a theatrical delay between the print and the earnings call wherein fear took hold and sellers duly sold, then King Satya The First declared, all good, nothing to see here, move along, wherein buyers verily bot. If you were brave and bought MSFT during the after-hours fear factory, you were fully 10% up by the open this morning. 10% swing overnight in a $2tn market cap business. Yikes.
Wednesday morning everyone decided it was all going to be OK, and everything was green, as far as the eye could see. Which is just as silly as everything being red lately. If you want to give the lie to this notion that we’re in a rotation from growth to value, all you have to do is look at the way all risk assets are moving in unison right now. Growth up, value up; then growth down, value down. Oh and gold is moving with equities and for large parts of the day bonds are moving with equities too. So right now we’re in emotional territory not any kind of WACC asset allocation review. Situation normal of course.
2pm Eastern, Fed press release. Still green.
2.30pm Eastern, the G-Man starts to speak. SELLLLLLL!!!!!
4pm Eastern, Nasdaq up by a whisker, S&P down by a thumb.
Then Tesla does the whole Microsoft thing all over again.
Still only Wednesday. Sheesh.