QQQs -30bps after another volatile day that saw a 3% trough to peak intraday move just to finish around flat. Potential reasons for the bounce? Zelensky’s apologetic X post could smooth tensions with the White House was cited as well as Europe gearing up to spend big—EU leaders floated an €800 billion defense boost on Tuesday, while German officials greenlit looser debt rules to fund more infrastructure and military projects. And now QQQs +70bps in the aftermarket as we get this news:
LUTNICK: TRUMP MAY ROLL BACK CANADA, MEXICO TARIFFS TOMORROW
So all it took was less than a day and SP500 down 5% from ATHs for a bit of capitulation on Trump’s part. We have the SOTU tonight. 2 year yields dipped 2bps while the 10 year rose 5bps and fed expects still hover around ~75bps worth of cuts for the year.
How to trade this market? First and foremost, we continue to be in a protect pnl mode (= low gross) — it’s still early in the year and we think post-Q1 (or when a clearer macro/policy picture e…
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