Welcome to the mullet market: Steady benchmarks in the front, crypto party in the back

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Mike Santoli describes how while the headline benchmark stock indexes have been all business, remaining calmly firm in an orderly uptrend

This market is starting to summon the lighthearted take on a mullet haircut: business in the front, party in the back. The headline benchmark stock indexes have been all business, remaining calmly firm in an orderly uptrend, barely laying an errant step for weeks. After a post-election pop that lasted a few days and took its year-to-date gain up to 25%, the S & P 500 has consolidated benignly, pulling back to revisit its pre-election high from October and then bouncing 1.7% last week.

mountain 2023-06-30 Nvidia, since June 30, 2023 Now it appears a violent catch-up move in bitcoin, perhaps depriving some energy from Nvidia shares, which last week finished flat as the company printed an earnings beat and strong guidance. The market's immediate response was simply to allow Nvidia to hold onto the $2.3 trillion in market value it's added this year, but not to pile on more. MicroStrategy party The crypto-geared public equities are where the festivities get a bit wild.

mountain MicroStrategy, YTD In case this stock is too tame, there are leveraged ETFs tied solely to MicroStrategy shares, including one that trades under MSTU , whose volumes have more than doubled this month. A Bloomberg report late last week described the fund sponsor scrambling to replicate the promised return through options when its primer brokers hit limits on their willingness to offer the exposure through swaps.

 

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