Shortened week saw: 1 first two days market pulling back, especially NQ, in anticipation of NVDA earning. 2 NVDA reported fantastic results after market close on Weds (2/21) and changed the market tone; 3 Market rallied huge on Thur (NQ 3% and ES 2%) and consolidated a little bit on Friday. 4 light on macro news (TH claim on the warm / hot side) and lots of fed talk walking back cuts Interesting note: bond rallied on Friday despite equity strength in the week, a bit puzzling given the equity mkt strength for the week. A bit too early for EOM stock-bond rebalance. Note: YTD, equity up by 6% yet long bond DOWN by 6%. The gap (aka crocdile jaw), at 12%, is wide open. =============== next week ============== 1 not much on macro, onl PCE on 2/29 (Thur) which is pretty much locked down given previous week's hot CPI and PPI numbers. 2 huge auction size (160b+) but mostly on short to medium maturity. 3 we are now getting towards EOM, and expect EOM rebal to favor bonds over equity. 4 HF has been sellling tech and equity names, yet retail keeps on buying. 5 option skew very flat with cheap put and relatively expensive call. 6 window of weekness (week after opex) is rapidly closing. |