Author Topic: Tech cools, retail rages and some madness  (Read 524 times)

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Offline Ptarmigan

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Tech cools, retail rages and some madness
« on: July 21, 2023, 09:29:59 PM »
Tech cools, retail rages and some madness
https://www.zerohedge.com/the-market-ear/tech-cools-retail-rages-and-some-madness

Quote
Hot stuff not so hot
The AI proxy, NYFANG, has been the hottest stuff around in 2023. It closed below the 21 day moving average today, by a margin not seen since late April. 50 day is still way lower...


Massive tech inflows
The inverse to early 2023. Long tech here is not unique...


Retail - back with a vengeance
Retail have been very active during the squeeze. Goldman's Marshall and team show the exposion of the high retail sentiment basket. They also point that a big part of the flow has come from options chasing: "... put-call skew in single stock have shown unusually large call option buying pressure."


Not a typo
Soc Gen's Edwards shows that net interest payments have collapsed, despite the surge in rates. He writes: "Something very strange has happened, and it helps explain the recession’s tardiness."




The madness chart of the day
Impressive chart via Edwards explaining why the recession refuses to kick in (yet). He writes: "We have concluded that a sizeable proportion of huge, fixed rate borrowings during 2020/21 still survives on company balance sheets in variable rate deposits. Companies have effectively played the yield curve in reverse and become net beneficiaries of higher rates, adding 5% to profits over the last year instead of deducting 10%+ from profits as usual . Hence it’s not just ‘Greedflation’ that has boosted US profit margins and delayed the recession. Interest rates simply aren’t working as they once did. It is indeed a mad, mad world."

Looking at the data, there is something very strange with the economy.
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Allow enemies their space to hate; they will destroy themselves in the process.
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Online Rick

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Re: Tech cools, retail rages and some madness
« Reply #1 on: July 21, 2023, 10:42:33 PM »
Yes, but I'm not astute enough to understand what it is.

Any ideas you want to share.

Offline Ptarmigan

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Re: Tech cools, retail rages and some madness
« Reply #2 on: July 25, 2023, 09:03:59 PM »
Yes, but I'm not astute enough to understand what it is.

Any ideas you want to share.

There are discrepancies in the economy. It is wonky.
Never interrupt your enemy when he is making a mistake.
-Napoleon Bonaparte

Allow enemies their space to hate; they will destroy themselves in the process.
-Lisa Du