Market After The Close, Tuesday 28 January

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Keep Calm, And Carry On

by Alex King, CEO, Cestrian Capital Research, Inc

With the proviso that it's FOMC tomorrow and as always Anything Can Happen, I think that for now we can conclude that this week's brouhaha over DeepFake, I mean DeepSeek, was Standard Operating Procedure as regards inducing fear and greed.

• Sunday evening Eastern time: Futures trading opens in Asia. The Nasdaq dumps. The matching narrative everywhere is "because DeepSeek therefore Nvidia is toast therefore so is the market".
• Monday morning Eastern time: Equities commence pre-market trading at 0400. Wise old hands are now buying the dip, whilst freaked-out retail are trying to log into their commission-free account and searching for the "outside RTH" checkbox to dump NVDA as fast as fast can be.
• Monday afternoon Eastern time: Equities close at 4pm Eastern .... and continue to rise in post-market hours from 4pm-8pm. Cue gnashing of teeth from retail sellers.
• Tuesday morning Eastern time: Equities open at 0930 ... and meander around, the Nasdaq thinks about going negative for the day. Any remaining weak hands now sell.
• Tuesday .... from late morning ... face-ripping rally!!! - everyone claims now to (i) be au fait with Jevons Paradox (ii) understand inference vs. training (iii) anticipate the soon-to-be-announced US Navy edict rendering DeepFake verboten.

Personally I love capital markets. They never cease to amuse me, particularly with this week's kind of nonsense.

Sometimes I call plays like this correctly, sometimes I don't, but so far I have been able to reverse course whenever needed, and come out on top. I thoroughly enjoyed this week's psychodrama - banked some money on the short side yesterday, banked some money on the long side today, off we go into tomorrow.

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