The market was late to react to poor data today with a low volume session until the last hour of trading which saw selling accelerate a bit. As we head into a big data day Thursday this seems to be a slow risk-off and given the data today missed I was surprised to see the delayed reaction - that reaction? Not good.
Richmond Manufacturing fell -11 to -5 estimate.
Consumer Confidence: 104.7 v. 107 estimate.
The flow all day was non-existent but there was notable weakness in some of the Mag 7 names all day. Notably, META 0.00%↑ and NVDA 0.00%↑ which failed to find buyers.
META - Almost a -$12 reversal from the HOD into close
NVDA - Almost a -$30 move lower from HOD into close
(There is special note on NVDA in premium for members tonight explaining the short-trade thesis, structure and a few more notes.)
For premium members, this is what I talked about Sunday; watching to see failed breakouts of resistance and weakness at the close. A fairly standard, and accepted principal of markets and the tape is that in bull market you want to see buyers support the close - this, is something to watch and we didn’t get that today.
But still, the market seems to not be worried - US Treasury yields (implied vols) are the lowest in a few years.
Keep reading with a 7-day free trial
Subscribe to The LongVol Report to keep reading this post and get 7 days of free access to the full post archives.