Dip Buyers of the Recent Market Pullback Are Alive and Well

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Nasdaq 100 ข่าว

S&P 500,Microsoft Corporation,Alphabet Inc Class A

Stocks Analysis by David Moenning covering: Nasdaq 100, S&P 500, Microsoft Corporation, Alphabet Inc Class A. Read David Moenning's latest article on Investing.com

As long-time readers are no doubt aware, I spend a healthy amount of my day trying to decipher the drivers of the daily market action. In short, whenever markets start to move quickly, I make it my business to understand why.

It doesn't matter"what" the reason is. And I most definitely don't feel a need to agree or disagree with said reason. For me, since markets are an"it is what it is" business, my opinion is not needed or warranted. I simply must be able to understand why the bots are doing what they are doing. In this case, there was no obvious news to react to. No inflation report. No surprise Fed announcement. Nor any new wars cropping up. Not even a big miss by a company such as NVDA. So, we had to dig deeper.

So, we looked around. And before long, there it was. The Yen. More specifically, the Yen-Carry trade. The surprise rate hike had ruined a"trade" that the hedgies had been using for ages in a VERY levered way. You borrow in Yen and buy the mo-mo names. But with the BOJ move, all of a sudden, the no-brainer trade was a loser. As such, it was an"EVERYBODY OUT OF THE POOL!" moment.

 

ขอบคุณสำหรับความคิดเห็นของคุณ ความคิดเห็นของคุณจะถูกเผยแพร่หลังจากได้รับการตรวจสอบแล้ว
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Stock Market Today: S&P500 ends higher as dip buyers return after routStock Market Today: S&P500 ends higher as dip buyers return after rout
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