TMTB EOD

Good afternoon – QQQs had a nice rally today up 1.5% (outperforming SPX up 70bps) on the back of a weaker dollar, crude falling 5%+, and treasuries rallying across the curve (2 year yields down 10bps and 10 /30 year dn 4-6bps) as ADP number came in weaker than expected this morning and buoyed the bulls hopes of the Fed staying out of a box of higher yields and higher inflation.  We think the choppy environment continues as we progress through the first half of October, but a nice move down in oil, yields, and the dollar are a few feathers in the bulls’ cap after today.  Crude chart looks like a false breakout (h/t @eliant_capital), which if holds bodes well for bulls’ hopes of a continued reversal in these 3 headwind pillars:

In semis, INTC finished flat after they announced to spin out their PSG division as a standalone business. As we called out this morning, INTC’s renewed focus on FPGA’s is unlikely to be good for LSCC, who’s majority revenues come at the low-end where INTC compete…