The Week Ahead
The most damaging phrase in the language is 'We've always done it this way'. Grace Hopper
Good evening from a very warm England. A pretty mediocre week with a surprise 50bp hike by the BOE, a ~60pt S&P range and VIX flirting with the 12 handle… 2s10s continue to invert and have retraced the regional bank crisis move.
The usuals…
Single Stock & Index
From what I hear and see, there remains to be a lust for European stocks over the US. It still seems that participants remain underweight US equities, and in my opinion, we have been going through a period of de-grossing up here. Though saying this… from what I can see - shorts have been pressed with long selling at a slower rate. There seems to have been a decent amount of long selling in MAGMA names as of late. I guess the question I am getting at is, “Can this market head higher?” - my answer is yes.
For the week ahead, I am looking for ES1 to trade back around 4,450 and NQ1 to try and reclaim ~15,280. Downside 4360 should act as support on ES1… With summer approaching, I expect quite a slow market for a while. Index will be tricky to trade, so focusing on individual names will be the most rewarding/lucrative way to trade. To remind you of what I said last week, “I expect SPX to hover around this area (>/~ 4300) until earnings season kicks off.”