As you are all likely aware, I have been travelling for the last 2 weeks in Vietnam and Cambodia. I just finished a 35 km bike ride through the ruins of Angkor Wat which was challenging in the 35C heat and high humidity but what an amazing experience. The engineer in my marvels at what these ancient people were able to build without the use of cranes or other heavy construction equipment. Also thought of the number of people that likely died or were seriously injured in this endeavour which are often forgotten.
Fast forward to last week, the markets were trading erratically based on the continued fallout from the SVB collapse and spill over concerns to other regional financials. Lots of effort going into preventing the next “Bank Run”. Both the two year and ten-year treasury yields dropped dramatically on bond market concerns about a potential coming recession or at least that the Fed could be close to finishing raising rates. Energy also got creamed which is the market telling you they believe there is an economic slowdown coming.
The bright spot in the market was the technology sector which investors and traders seemed to consider it as a safe haven trade compared to other sectors of the market including financials.
Next week, the big event will be the Fed announcement on the next rate hike which is still expected to be a 0.25% increase despite financial turmoil. Powell will speak after the announcement so expect some volatility then.
With the ongoing news feed rattling markets one minute and boosting them the next, it is a good time to either stay in a lot of cash or be prepared to be nibble with your swing trades. Technology sector seems to be the safest place to be. Congrats to Ardi and Andrew who did a great trade on GS, taking advantage of an overreaction on some of the stable financials. I have serious ROMO (regret on missing out) with that one.
With less-than-optimal internet I was able to join at the open Thursday and Friday to get in a few profitable trades on AMZN and AMD. Back on Tuesday and look forward to chatting with you all Wed morning at the open.
What to Watch for this Week:
Sectors in Play Last Week:
Earnings this week:
Brian (Randy) Pezim is a Canadian trader and investor, with a focus on swing trading equities as well as day trading.