Nasdaq “Corrected” a bit more then 10% off most recent highs, Whether it was negative gamma effect ,Tesla and Apple post split buyers on strike, late to the party longs and or Softbank taking profits on a big winner Nasdaq as corrected… for now. nasdaq is the straw that stirs the pot so as it goes so does other markets.
This morning Nasdaq +1.6%,Spoos +.9% Stoxx 50 +.76% Dax +.95%,Surprisingly European tech sector only +.7% The Sell of fin the pound continues for the 6th consecutive day! GBP down 6 big handles over that span Brexit worries the culprit for selloff. Not to be outdone the Euro is working on a 7th consecutive lower close, Euro only down 2.5 handles in this span, ECB meeting tomorrow just a reminder as it appears the currency bracing for more dovish rhetoric from Lagarde .While it looks like a short term top is in place for Euro the exact opposite, no surprise appears in Dollar index, A short term bottom in place. I’m watching a break above 94 ish in the spot contract as further confirmation a bottom is found. Think about it Short Dollar,Long Nasdaq ,Long Gold seems like a great trade a few weeks ago and Likely worked well an unwind of this type of trade also to blame for some of the Nasdaq correction
Treasuries a bit soft today, Gold and Silver Sideways to lower, Copper unchanged. Worries starting to creep in again that the Global Economic bounce is losing steam, it is very possible that more Fiscal stimulus is needed. Eurozone will be hard pressed to get another package through, Senator Cruz said this morning highly Unlikely that another Stimulus deal will be agreed upon ,the republicans have put forth $500 B deal that will not pass the house. Im surprised in an election year that trump cant get another round checks to the people.
(Reuters) – Coronavirus deaths in the United States were approaching 190,000 on Wednesday along with a spike in new cases in the U.S. Midwest with states like Iowa and South Dakota emerging as the new hotspots in the past few weeks.
Trials of a Covid-19 vaccine developed by Oxford University and AstraZeneca were put on hold for a second time, after a participant contracted an “unexplained illness”. Much hope has been pinned on the vaccine, which is being tested on tens of thousands of people in Phase-3 trials. A spokesman said such pauses were normal; illnesses often happen by chance. (pro farmer)
Reuters) – Uncontrolled wildfires driven by high winds and unprecedented temperatures raged across the U.S. West on Tuesday, incinerating the Washington town of Malden and threatening communities in Oregon and California.
Mizuho -It’s officially a 10% correction in Tech, as hunter-klller algos forced moves to squeeze traders short volatility in tech names. Across U.S. exchanges last week, they bought 22 million more call contracts than they did puts, higher than the previous record set in June, even as overall volume declined on the New York Stock Exchange (Bloomberg). Reads like a lot of stories going back at least to the Hunt Brothers where someone corners a market and de facto causes a runup, hoping to bail before anyone else does. If they got out early Thursday, they might have won and caused the tech selloff in the process.
Morgan Stanley saying Investors should push hedges beyond Nov 3rd as election night might turn into election week
From market ear: