ANDIKA BULLETin 25 JUL 2024

I said this was going to happen...

Ugly Micro (Mag7 earnings fail to impress...enough) and Ugly Macro (home sales and manufacturing meltdown) left an Ugly day for US stocks and US bonds (the long-end) while the dollar, crypto, and commodities were all relatively unchanged by the close.

Overnight seems very much an Equity event which suggests that technicals and positioning are the major drivers.

All the major US equity indices were lower today but mega-cap tech was hit hardest, smashing Nasdaq down over 3.5% for its worst day since Dec 2022. Ugly close did not help at all. The Dow was the least ugly horse in the abattoir today...

The S&P 500 'no-2%-drop' streak is over...

The Mag7 basket of stocks suffered its biggest daily loss since Oct 2022 (having lost almost $1.75 trillion in market cap from their highs 10 days ago)...

And every member of the Mag7 was down.

But the pain didn't end in stocks as the long-end of the Treasury curve was clubbed like a baby seal...

They have all been saying this...It's different this time...

Bullshit! It will end like it has always ended - badly.

Happy Thursday!

This information contains unsolicited general information only, without regard to any individual’s investment objectives, financial situation or needs. It is not specific advice for any particular investor or trader. Investment in the stock market involves risk.

This information may not take into account your investment objectives or financial situation, and you should obtain advice based on your own individual circumstances before making an investment decision.

This information is made available to you by ANDIKA Pty Ltd ABN 41 117 403 326, a licensed securities and derivatives dealer (AFSL # 297069).