U.S. stocks already saw the worst-case scenario last night, and still didn’t get hammered lower. All the bad news was priced in last night. Warsh’s remarks around noon today were fairly neutral, and the odds of a rate hike in October have fallen sharply, from 50% to 14%. Ten- and 30-year Treasury yields have also started to fall. There’s no additional bad news tonight, so there’s no reason for stocks to keep selling off. If they fall again, it’ll be a bear trap. This should be the moment to buy the dip.
Although the recent slump in U.S. memory stocks has once again sent me into a funk, thinking about it rationally, I can simply avoid memory stocks here. The rest of tech has been unfairly punished. There’s no reason U.S. stocks should be falling with no floor, like meme coins. I firmly believe this is a market for rational people. Many key assets, whether indexes or individual stocks, have fallen without a bounce and are now near major support levels—and none of them broke through it last night. Give me one reason they’ll break below it tonight. When two opponents meet on a narrow road, the brave prevail!!!
Although the recent slump in U.S. memory stocks has once again sent me into a funk, thinking about it rationally, I can simply avoid memory stocks here. The rest of tech has been unfairly punished. There’s no reason U.S. stocks should be falling with no floor, like meme coins. I firmly believe this is a market for rational people. Many key assets, whether indexes or individual stocks, have fallen without a bounce and are now near major support levels—and none of them broke through it last night. Give me one reason they’ll break below it tonight. When two opponents meet on a narrow road, the brave prevail!!!