The NASDAQ shed 220 points today, reaffirming a downtrend that seemed lost just a week ago.The NASDAQ gains for July are now HALVED, +5% down from 10% and the reason for that is simple.
The idea of a soft landing and/or “mild recession” is fast becoming a fairy tale — buttressed by the weak numbers out of WMT and job cuts at SHOP. This reality has caused Wall Street to price in risk again, revoking the recent gains in consumer oriented stocks. The risk to buying this dip is this simple fact: this time is different.
This leg lower is based on fundamental news, which warrants a tangible reassessment of earnings. Things needs to be priced for recession and we are nowhere close to that at these ELEVATED levels.
Technically speaking, we should bounce soon. I just couldn’t get myself to commit to the technicals when the fundamentals were staring at me demanding that I be cautious.
As such, I closed +75bps, DOWN from a session high of +1.5% — heavily hedged and long a pastiche of energy and monkey pox plays — because why the fuck not.
I snapped this midday, a telling tale of post modernism Americana.
If you enjoy the content at iBankCoin, please follow us on TwitterTodays working themes sums up America pic.twitter.com/tD4nbMCkBX
— Stocklabs (@stocklabsapp) July 26, 2022
Tomorrow needs to be Green on Gold, and Green on QQQ.
Fuck Monkypox and everything else wrong with Merica.