US 10 Year yields are still sitting at the highs, firmly marching towards the 3% mark.
Have we reached a local bottom in stocks? I am not sure but yields up, stocks up, oil down. We will remain volatile as the earnings season is ongoing. Pretty risk-on day nonetheless.
Fed Evans came in moderating somewhat Bullard’s super hawkish views from yesterday:
- I don’t see the need for hikes larger than 50 bps
- Comfortable with the path that includes two 50 bps hikes and gets rates to 2.25-2.50% by year-end
- Won’t be able to make a judgment on whether inflation pressures are easing until the end of this year
So what is happening exactly, why all of the sudden there is a disconnect today between bonds and stocks?
The press (CNBC) thinks:
Options flows do not seem to explain the story
Well probably sentiment-wise, we were too bearish short-term, and traders are looking for a quick reversal.
I like to buy the NASDAQ for the swing portfolio when we are below the yellow line when less than 15% of the NASDAQ 100 stocks are above the 5-day average.
And the fact that probably selling pressure from raising cash to pay taxes to Uncle Sam is gone by now.
Equities dipped slightly at the open then rallied the whole day.
ARKK is having a good day:
Generally, the most beaten-up names do great:
$SQ Block having a block party up 5%:
$ROKU up 8%
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