Happy Saturday– hope everyone is enjoying their weekend. TMT had a rough week with the QQQs finishing down 3.5%, ARKK finishing down 10%, and SOX dn 3.2%. The 10 year climbed 13bps despite the pullback on Friday as yields broke out to new highs not seen since 2007. Large-cap had a rough week underperforming the QQQs but L/S performance was likely fine given high short interest stocks were down even further.
Our tactically QQQs cautious call we wrote about last week worked well. Many pointed to Powell’s more hawkish commentary and higher dot plots in ’24 and ’25 for weakness, but we here at TMTB think the sell off was due regardless. Our rationale for getting cautious on the market was not only because the macro picture was setting up for a pull back – weaker consumer data points, seasonally weakest part of the year, yields at their highs, heading into large treasury issuance in Oct – but also because from a bottoms up price and fundamentals perspective, Tech was clearly showing si…
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