One for the Bulls... As shown below, during this tech pullback, forward 12-months EPS in tech has actually ticked higher.
So you could argue that this is mostly a positioning and sentiment pullback, especially in tech... Source: Bloomberg, RBC
CTAs will dump stocks over the next week in EVERY SINGLE SCENARIO warns Goldman Sachs.
If the market trades lower, CTAs are projected to sell more than $7 billion worth of equities.
The S&P 500 yesterday ended a streak of 356 trading days going back to February 2023 without experiencing a one-day drop of 2% or more.
This was the longest streak since we went 949 trading days from May 2003-February 2007 without one! Source: Bespoke
WHAT A DAY...
🌩 Mag 7 stocks all finished in the red today and have erased erased over $500 BILLION of market cap today. ⚡ Nasdaq and S&P 500 had worst their day since 2022 ☄ The S&P 500 just fell over 2% for the first time in 356 trading sessions. It ended the longest stretch without a >2% pullback since 2007 Source: Bloomberg
So far in 2024, only 29.8% of the stocks in the S&P500 are outperforming the benchmark.
Source: Koyfin
"The H1 results reflect LVMH's remarkable resilience, backed by the strength of its Maisons and the responsiveness of its teams in a climate of economic and geopolitical uncertainty."
Bernard Arnault Below $LVMH Q2 2024 organic revenue growth by business group by Quartr.
$SPY The bull's first line of defense holds strong. 💪
Source: Trend Spider
Equal weight S&P 500 (ETF $RSP) is considerably cheaper than the market cap weighted ETF, just as we may see earnings growth broaden out to a wider swath of companies.
Does that spell opportunity? Source: Markets & Mayhem, GS
