Big-Tech, Bullion, & Bitcoin Take a Hit Before NVDA's Major Announcement
Low Liquidity and High Anxiety
Following the lowest volume full session of the year yesterday, and the second lowest on Monday, the lack of liquidity was evident in today's tense session. Traders were quick to sell off gains ahead of what is being touted as the most significant earnings announcement to date. The Nasdaq took a significant hit, but all major indexes experienced two substantial drops during the day. However, these drops were met with a surge of buying the dip as the final hour of trading began.
Mag7 Stocks and 'Most Shorted' Stocks Take a Hit
Mag7 stocks were sold off for the fifth consecutive day. Similarly, 'most shorted' stocks also experienced a sell-off, effectively wiping out all the post-Powell euphoria.
1-Day-VIX Soars as Earnings News Looms
The 1-Day-VIX saw a significant rise ahead of tonight's earnings news, even surpassing the VIX.
Treasury Yields and Dollar Rebound
Treasury yields were up across the curve by 1-2bps on the day, with a very slight underperformance at the long-end. The dollar continued its rebound, erasing 75% of the post-Powell plunge.
Bitcoin and Gold Experience Drops
Bitcoin took a hit today with a significant drop shortly after yesterday's equity cash market closed. The cryptocurrency found support at $58,000 and tested back up to $60,000. Gold also saw a drop on the day, but found support at $2500.
Oil Prices Dip
Oil prices fell for the second day, with WTI remaining above $74.
Stocks and Bonds: A Reality Check?
Is it time for stocks to adjust to the reality of bonds? And could NVDA be the catalyst for this adjustment?
Bottom Line
It's clear that the market is experiencing a period of high anxiety and volatility, with major tech stocks, bullion, and Bitcoin all taking hits. The looming earnings announcement has created a tense atmosphere, and it remains to be seen how this will impact the market in the long term. What are your thoughts on this situation? Feel free to share this article with your friends and discuss. Don't forget to sign up for the Daily Briefing which is everyday at 6pm.
