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Market Fireworks After New Year’s?
A week ago (maybe two, I can't remember), one reader suggested that tracking vol dynamics wasn't worth the trouble and that the same goes for positioning across fundamental/discretionary investor cohorts and systematics.
I did that reader a favor: I didn't publish his/her comment. If I'd been in a bad mood that day, I might've published it and then simply asked, "Well then what, exactly, should one track?"
As we saw in 2023, trying to forecast asset prices based on what I'll generously call ma
Yesterday and today looked like merely profit taking on mega-tech, and profit taking on the stuff that ran up in the last couple/few weeks of 2023 – small caps, high short interest names, etc.
The former looks more modest than the latter in percentage terms, but I guess is equivalent in dollar terms. 1% off the [Previously?] Munificent Seven ($12TR mkt cap) is like 2% of the Russell 2000 ($5TR mkt cap).
(Numbers casually poked into a iPhone while laying on the couch watching a sitcom, so not to be relied upon.)
Was the sitcom any good?
Meh, I think, dozed off.
I’m loving the profit taking. Creates second chances in some names.