Volatility is calming. Markets are going back to 'business as usual' - watch for institutional buying
What's happening? Well, three things: Volatility is calming. It's as calm as a cucumber compared to last week (see below). Markets are going back to ‘business as usual.’Markets are holding their breath for Jerome Powell's signal of a Fed rate cut in September at his Jackson Hole address next week, with this week's CPI release not expected to rock the boat. For the most part,
it looks like markets and investors can ‘get back to basics' and focus on fundamentals—US inflation is falling and US company earnings are growing. We're seeing that play out. US earnings season is drawing to a close, with 455 of the S&P 500 companies having reported so far—most reporting earnings 4% better than expected, with 9.2% earnings growth. So we have pleasing news for markets to step up.
In Australia have the most pivotal week of earnings season underway, with CBA reporting, as well as Australia’s two biggest healthcare companies, CSL and Cochlear, and one of the world’s biggest landlords, Goodman Group. Click here for more.
Watch for institutional buying picking up in Australia, and offshore. Today we saw BNP buy big into Nvidia today. And net longs are increasing in TSMCI as well. So keep an eye on large orders coming in. Don’t forget to keep an eye on the institutional tracker on moomoo, as it can help you get ahead (here is how to that, step by step in video form). Also keep an eye on ETFs heavily sold down after the carry trade unwound. Semiconductor ETFs like SOXX and SMH are down 20% from their highs, and appear perhaps oversold and they could be worth watching as they seem embedded in long-term uptrends, despite seeing huge pull backs.
What else to watch, and consider?
Other notes to read
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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151453268 witso : No comment really , except to say i have learnt a lot in the last seven days and it has been exhausting and a reality check
Nisdey 151453268 witso : number doesn't always go up.
hedging is worth the price, especially when you can see a correction coming