Somewhat of a mega-cap tech slaughter yesterday off of potential investigations. They got the FB, AMZN, GOOGL but also got all the leading software names…where a bunch are no longer leading.
Of course, an “on purpose” word of easy money by Fedhead Bullard stanched some of the bleeding. If nothing changes, we expect a rate cut as soon as this month’s meeting but more likely the end of July.
Things gapping up today off of very oversold conditions. Keep in mind, all major indices are BELOW the 200 day average here.
GOLD and GOLD STOCKS are emerging again. We shall see if it lasts. This asset class has teased before to no avail.
Interest rates are the big story as the 10 year closed at 2.081 and the 30 year amazingly down at 2.548. Yields are very oversold. If yields bounce up, expect financials to bounce up.
Bulls would rather have the market open down and then rally but will take anything this second. Remember, throughout all corrections, the fed comes to the rescue. Looks like they telegraphed it again yesterday. Every time they have made a move, it has helped markets.