I was positioned wrong at the open and have attempted to correct that throughout the morning session, to no avail. But placing myself aside at the moment, off by 60bps, the market looks fine, if looking at it as a consolidation day.
After big moves it’s important to rest before legging up again. The earnings out of $TSM calmed the market down regarding semis. But once again we have rates climbing, now up 7bps for the session. The fact that rates are climbing so much only means the Fed has more work to do to convince people they’re serious.
If you bought this morning you’re likely down for the session, since breadth collapsed and we are well off the highs. Today the weakness is focused in the small caps and that’s where my hedge is, in $TZA.
Since I haven’t figured today’s tape out yet I have very little to offer other than to suggest the selling off the highs isn’t that big a deal.
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