Quite a day as the QQQs finished down 1.25% -- market was bid early, but geo-political fears and a Michigan sentiment report showing sharp drop in confidence alongside a jump in inflation expectations was the catalyst for market to begin to sell off. Semis were the big underperformer today falling 2.7%, partly due to news that Biden was tightening up loopholes giving Chinese companies access to American AI chips through units located overseas. Crude finished up 5.5%, yields gave back some of their gains, and the VIX spiked 20%+.
We called out a potential negative change in the market’s character in our EOD note yesterday given some stocks sold off on good news, and today we got more of the same even while the market was hovering right below breakeven – we called this out on X early:
We here at TMTB look at morning news items similar to “mini-earnings” and how stocks are reacting to these news items give important tells into which direction the market wants to go. We’ll take a day or t…
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