Hangover.
Risk appetite abruptly evaporated on Thursday, as investors assessed the long road back from the virus and concerns mounted about a second wave of infections in the US.
Jerome Powell struck a largely upbeat tone about long-run prospects for the world's largest economy, but the near- and medium-term challenges are formidable, he said. A steep decline in oil on Thursday added to the risk-off move.
Markets appear to be vexed by new cases in Texas and Florida, as well as rising hospitalizations in
Friday into Monday there were clear signs of euphoria in the markets, seems appropriate we should get a breather in the rally or a proper pullback. With VIX and Options expiry next week any serious weakness between now and June 19 will likely mean a lot of the gamma will be monetized and not rolled, setting us up for bumpy moves headed into earnings season, perhaps that will get rid of the Robinhood Buffets and allow HTZ to be laid in peace once and for all, it is ok to let the Bear out of its cave once in a while.
“Robinhood Buffets” … initially I thought you were identifying a restaurant chain about to file BK
There’s a boatload of big money cash on the sidelines.
Sorry, clicked too soon. Continuing:
Some of that $ will be watching to 200 day moving averages, which for the SP500 sits at 3013. If we’re starting a range-bound period, then we may chop around n the 3000-3200 range.
Looking at Robintrack, the newer Robinhooders are losing money now. It’ll be interesting to see how they react – double down or exit?
It’s unlikely they will have the cash or stomach to double down.
Check out the WallStreetBets group on Reddit (over 1MM members). This is where the Robinhooders hang out. They’re rallying cry is “YOLO!” and they revel in placing bets on short-term OTM puts and calls on so-called “meme” stocks (which they call “stonks”). When somebody strikes it rich, they post a graph of their Robinhood account value to brag. And when somebody gets completely wiped out, they post a graph of their Robinhood account value to brag. They may not have the cash, but they describe themselves as “degenerate gamblers” and definitely have the “stomach” to double down!