Behind The Scenes Of Last Month’s Snapback Stock Rally
Market narration over the past month (and, really, over the past year) has revolved primarily around rates.
Of course, it all depends on who your narrator is. If your preferred flavor of market analysis is "plain vanilla," where that means you're only interested in where the S&P closes and how your favorite blue chips fared during a given week, you're never going to encounter a shortage of generic stock commentary.
But the action resides in rates. Bonds were the sponsor of recent risk even
These things are about all that matters, on a day-to-day basis at least.
But the financial media and most investors seem to be clinging to the old relationships outlined in investment guides they may have studied when starting out.
Hoping to find order in the midst of chaos.
But when was the last time that earnings really mattered? Mayeen a while. No?be the reaction to Trump’s corporate tax cuts… Otherwise it’s been a while, no?
Thanks for the peek behind the curtain (of a mini bubble)! Unless you’re an investor like Buffett “buy and hold for decades”, the volume and algos are quite important.
I really enjoyed hearing Charlie McElligott on Odd Lots as his technical expertise (about options and specifically the day by day ecosystem https://m.youtube.com/watch?v=tbFFBK4_j04 ) was clearly much deeper than the interviewers wanted to go (and I could barely follow it at the superficial level).
Thanks for posting that link. Everyone should go listen to that. The very first few seconds are great too.. Tracy: “Do you remember Armageddon?”
Plus One here. I sent the link along to some colleagues and friends whose eyes glaze over when I try to explain this stuff.
Lottery tickets and skew = terms which stirred up things in the sediment in this old guy’s brain.
Thanks! Seriously.