Hope everyone is having a good weekend. QQQs/SPYs finished up around 1% this week helped higher by semis. The big news this week was China pulling out the Bazooka as China unveiled its most aggressive package of stimulus measures since the pandemic including rate cuts to 7 day reverse repo, bank RRRs, mortgage borrowing costs, along with liquidity injections aimed at bolstering stocks. On Friday, the PBOC lowered rates and injected liquidity on Friday following through on those promises made earlier in the week, while the gov’t is expected to unveil additional fiscal actions ahead of the upcoming holiday. This weekend more announcements:
We also don’t think it’s a coincidence that MBS leaked news he wanted to gain market share in Oil the same day as China announcement stimulus, helping putting a lid on Oil (implicit I got your back China).
So what does that all mean for our macro view? The last few weeks we have been in the “choppy, but upwards trending market” gaining increasing co…
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