Jul 31 MMC (Morning Market Commentary)

Jul 31 Market Commentary

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Overnight markets are mixed to green with 4/6 of Asia prints green, and 3/4 of EU prints green while SPY is up 1.5pts in pre-market action. The KOSPI had its first winning day in a while, up +16.54% after 320K acct’s got margin called. With such a strong rally, will said players margined get back in? AMZN + AAPL had earnings and it was a tale of two tickers with AMZN ripping +10% from earnings while AAPL sold off -8.5% from its print.

Overall the AI trade recovered nicely with many tickers 10+% off their lows. Reports that Leopold Aschenbrenner (younger German former OpenAI researcher turned Hedge Fund trader of the fund Situational Awareness) liquidated his entire position in one fell swoop to Citadel might be a part of this as he was taking on water left and right after being up 100’s of %’s to just ~+20-28%. That + the MSFT earnings showing who’s the big boy in the room when it comes to AI and that there is a workable path going forward...for now. Most of the AI tickers recovered their weekly anchored VWAP and did so with vigor.