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What do you Think of This Week’s Market Performance?
I'm a lifelong LA Dodger fan. It's been a while since we've won a World Series and it's been a tough few years getting so close. One of my favorite memories was an interview with the legendary manager Tommy Lasorda when he was asked what he thought of Dave Kingman's performance after a game when the Met hit three home runs. (for sure NSFW) Tommy didn't hold back and this clip reminded me of the last week in the markets if you asked me. I have been expecting a pullback at least of 5% or more after a 20% move from the December lows. The pullback lasted 4 days but since the markets were sideways for most of February the corrective wave was triggered with an 8 day closing low. Since then the S&P is up 100 handles on what? Weak economic reports globally. Apple getting an upgrade after a 20% move off the lows despite iPhone sales will be terrible when they report Q1. Nvdia up big after buying a company that had been on the market for a year despite Nvdia still having inventory and demand issues. Tesla has probably the worst news that has been bought. The biggest bull lowered his estimates for Q1 deliveries by 40% well below the street while Elon Musk and Tesla are exhibiting amateur hour with closing stores then reopening them after figuring out they can't get out of leases. Chipotle which sells burrito's now has a market cap of $18 billion and trades with a 73 multiple. Have they cured cancer with their guacamole? Furthermore a few market internals and factors make no sense: short interest was just released showing an even lower number of shorts involved in this market and outflows in equity funds has been really strong all year too. What maybe has me going full Tommy Lasorda is how the US bond market has been bid despite the strong equity market with yields looking like they want to break lower!