Jul 30 Market Commentary
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Overnight markets are mixed to green with only 1 red print in Asia, 1 in EU while SPY is up 6pts in pre-market action. KOSPI had a wild session yesterday with the Korean Ministry vowing to ‘stabilize’ the market after $36B was wiped out and 100’s of 1000’s of accts (mostly leveraged from people under the age of 35 got margin called). It ended down -1.23%. Meanwhile META/MSFT earnings came out with META missing on EPS (first time in years) while MSFT beat. META is down -10.16% on the release while MSFT is up +8.89%.
The FOMC came and went with no rate hike and Warsh talking double-speak for most of the presser. But after it was done, markets started selling off with the 20yr yields ripping from 5.17% to 5.26% creating concerns over future rate hikes and the unsustainability of the long term debt for the US. We’d like to note 5.26% is the 2nd highest print for the 20yr, with 5.39% back in Oct 23’ beating it out so keep an eye on TLT/HYG/MOVE on the day. The overall trend is continuing to the upside and this is problematic for equities. Most of the option flows yesterday were focused on 0 DTE’s for the S&P 500.
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