Market Recap 8/3/22

During an interview with Reuters broadcast live on Twitter spaces, San Francisco Fed President Mary Daly said: “I don’t feel the pain of inflation anymore. I see prices rising but I have enough… I sometimes balk at the price of things, but I don’t find myself in a space where I have to make tradeoffs because I have enough, and many Americans have enough.”

She drives past this every day on the way to the office too.

Glad she has enough.

Usually, 30-50 things a day piss me off. That one got my goat.

Oh, and if you have a small business, they are coming for you.

Also, this one just got hired by Pimco. Getting hired for “access”, not skill. What a racket.

“Frustration Everywhere; Traders Feel Like They Can’t Get Anything Right”-JP Morgan Trading Desk

That quote applies to me because I feel like I have been zigging when I should be zagging for a while now.  They decided to sell energy and buy tech which they hated. Chips, software, infotech, and internet-related names went from dogs to stars lately.

I’m not sure how much of this newfound love (for tech) is organic or just massive short covering but it is what it is.

You may remember I spoke about the CTAs and systemic buyers over the weekend.  They matter a  lot.  You really should read this piece because it can explain a lot.

It really is not fundamental-based, but more technical and more momentum-based, but I have seen it happen before and as I said the other night, I always watch the systemic buyers and the CTA’s. It helps remove a lot of the macro noise.

There is an old saying by the specialists on Wall St that “buyers are higher”.  This relates here.

Maybe this time is different, but for now, these guys are pushing (and will chase) momentum higher.

I have grown to detest all things crypto, but a chart is a chart, and MARA, RIOT, and ETHE look incredibly bullish. More on these soon. We may need to take another shot.

See you in the morning.



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