QQQs -70bps as markets digest recent strength. Under the surface, today we saw a underperformance in sectors/names with strength post-Trump. For example software -1.3% underperformed following through on the gravestone doji we called out yesterday:
Just healthy digestion imo - nothing goes up in straight line. Meanwhile, sectors like solar which have been under pressure since trump managed to catch a bid today. Semis finished the day flat although AI semis were mixed. BTC popped its head of $90k but finished the day near $88k. IWM - 1.3% and ARKK - 3.5% underperformed after a week of o/p.
Macro wise, the Trump narrative turning a bit more balanced as investors balance tax relief/deregulation against tariffs (already starting to hear pushback against Trump’s plans - Politico), immigration and deficits. Powell’s comments this afternoon were slightly more hawkish than last week, but nothing to write home about as market still very much pricing in cuts on 12/18.
Let’s get to the recap…
Internet
NFLX +80bps continues to rally into Paul v Tyson as JPM reiterated their bullish stance this morning. Will be interesting to see how many people sign up for the fight and how churn looks like after - we’ll start getting 3p data around middle of next week
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