Fade or fad
Can NASDAQ defy "it"?
The short term "gap" between NASDAQ and Fed's BS is getting very wide, but the question is does the BS "matter"?
Source: Refinitiv
Tails offered
Both the SDEX and the TDEX indexes continue moving lower. Note that the TDEX hasn't traded this low since mid March...
Source: Refinitiv
Fade (AI) leather jackets
Summing it up pretty well, JPM's tech trader, Ron Adler: "The AI hype continues to wane. Companies spent much time on AI during earnings calls/analyst days, and now it's time to start putting up results. Anecdotally, the experience of these products has underwhelmed users, and the novelty could wear off quickly. Yes, there's a "cool" factor and real-world use cases, but aside from executives in leather jackets, it's unclear how most will monetize and implement. That will take place in the next 12 months, but investors are already growing a bit anxious."
Soft landing - nothing for the big bond managers
Hartnett Friday poetry: "Soft landing all the rage but ain’t a bond manager in the world with more than $150bn of AUM who doesn’t think there won’t be a hard landing".
US defaults
GS: "We expect US defaults will peak in the middle of next year before dropping back down".
Source: Goldman
40 year lows
This is not a position you would like to "inherit" on a trading desk...Size wrong, and everybody knows your position.
Source: BofA
Continue to use oil volatility
On September 1 we outlined our short term bullis oil logic and mentioned using imploded oil volatility for upside exposure. Oil has surged since then, and the OVX remains close to recent lows. If you bought the USO call spread logic (here), make sure to roll those strikes dynamically in order to capture max optionality.
Source: Refinitiv
Hard or soft landing - ask energy
Hard landing - energy leads. Soft landing - energy lags. Go figure...
Source: Warren Pies
Value loves higher oil price
Value, and to a lesser extent small caps, tend to outperform when oil price rises.
Source: Barclays
Must hold held
SX5E traded well below the 200 day moving average earlier today, but has since then made a comeback and is looking to put in a big hammer candle on must hold levels.
Source: Refinitiv
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