🍔Market Bounce Incoming

This selloff is overdone

What a whirlwind week it’s been. S&P500 fell -4% intraday (Nasdaq -6%) before bouncing in earnest on Friday. In today’s post, we explain all the reasons — positioning, liquidity, macro, earnings, and technical — why the market sold off, and why we disagree with the bears. We think the market can recover to new highs from here.

We have been on the right side of the market rally since the bottom set in April. Despite all the concerns around AI valuations and overspending, we’ve remained steadfast in our positions, holding onto 100% equities. No cash, no bonds. This allowed us to capture all of the uptrend, and more.

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The rest of this article is for premium members. Today’s post covers:

• Positioning unwind

• Liquidity vacuum

• Macro news: Big layoffs

• Gaps get filled

• Strong quarter for earnings

• Technicals

• Our portfolio