Semiconductors stop falling and everyone’s calling a reversal? First, check whether credit spreads are getting too hot to handle.
After eight straight down days, the Nasdaq rose 1.2%—a pretty encouraging sight. But Goldman’s own activity reading was just 3 out of 10. Hedge funds were net sellers, with tech, media, and telecom taking the hit. CoreWeave surged 7% intraday after being upgraded to Buy, only to finish lower anyway, while credit spreads in cloud computing hit a record high. The index reclaimed its 50-day moving average but failed to break through. What kind of reversal is that? At best, it’s catching its breath.
Now look at crude oil: as tensions in the Middle East rose, U.S. crude climbed for eight straight days, and Treasury yields shot straight up to 5.14%. There’s only so much money to go around, and for stocks to keep rising, they first need the bond market’s blessing. I’m not chasing a low-volume bounce. Let’s see a breakout on strong volume first. If you’re bullish, tell me in the comments: what are you using to bridge this spread?
After eight straight down days, the Nasdaq rose 1.2%—a pretty encouraging sight. But Goldman’s own activity reading was just 3 out of 10. Hedge funds were net sellers, with tech, media, and telecom taking the hit. CoreWeave surged 7% intraday after being upgraded to Buy, only to finish lower anyway, while credit spreads in cloud computing hit a record high. The index reclaimed its 50-day moving average but failed to break through. What kind of reversal is that? At best, it’s catching its breath.
Now look at crude oil: as tensions in the Middle East rose, U.S. crude climbed for eight straight days, and Treasury yields shot straight up to 5.14%. There’s only so much money to go around, and for stocks to keep rising, they first need the bond market’s blessing. I’m not chasing a low-volume bounce. Let’s see a breakout on strong volume first. If you’re bullish, tell me in the comments: what are you using to bridge this spread?