Obsessives 1, Doomscrollers 0
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Market On Open, Monday 3 June
by Alex King
If, on Friday last week, you had something interesting to do like go to a real job, take the kids to school, walk the dog, cook dinner, read a book, doomscroll TikTok, anything normal, then when you checked in on the news later that day you might have said, hm, the markets were up a little.
If on the other hand your weekdays are spent doomstaring at stock charts then you would have concluded, GEEZ what a day! Wowsers!!
Here’s what happened Friday to normal people:
And here’s what happened Friday to OCD people:
Now, for next-level OCD types we could begin to explain this in terms of hedging flows and such. But I think for now we can just say, sometimes markets are hilarious, particularly in their capacity to scare folks into selling or shorting at local or long-term lows only to rip back up at a time solely of bigs’ choosing. Which is yet another reason to follow price, price only, not try to work out what may happen tomorrow based on the news, the latest junior Fed member’s proclamation, Twitter, whatever. Price can tell you where price may move next, if only you can tune the antennae correctly.
So let’s get back to our pattern recognition. As always in these notes, today we cover all four primary US equity indices (the S&P500, Nasdaq-100, Dow Jones-30 and Russell 2000); bonds (TLT), volatility (the Vix), oil (USO) and sector-specific ETFs including semiconductor (silicon being the new gold!!).
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