The opinions expressed below are my own and do not necessarily represent those of Visdom Investment Group, LLC.
Awaiting Nvidia
Overnight and early morning futures were flat and news headlines were benign. Asia rallied strongly overnight and Europe was up nicely when our market opened. The S&P opened about +35 and slowly gained from there over the course of the session. Yields climbed about a bip today.
Today was pretty quiet. Markets slowly embraced risk-on again, continuing yesterday’s moves. The State of the Union may have rankled different political groups but it did not rankle investors. With that potential risk out of the way, investors turned towards the Nvidia’s earnings announcement after today’s close, and they feel constructive about it.
Wild upside speculation across the broader market is not happening. There’s a patient re-embrace of the market. I think most investors are sufficiently calm after the handful of scares recently. Now they are deciding that the waters look pretty good and they are easing back in.
We will only know whether this is prudent or not after we see how investors react to the Nvidia information. Considering the day’s price action, it seems like investors think good-enough news is in the bag and getting long ahead of the actual reveal is worth the risk.
See you tomorrow.
-Mike
Visdom Market Commentary
IMPORTANT INFORMATION
This is general educational information and market commentary and is intended for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction.
All market and economic data herein is as of the date hereof and sourced from Bloomberg unless otherwise stated. The information is subject to change without notice and we have no obligation to update you.
This general market commentary is intended for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The views and opinions expressed constitute the author(s) judgment based on current market conditions, are subject to change without notice, and may differ from those expressed by other employees of Visdom Investment Group LLC ("Visdom") and Visdom. Past performance and any forward-looking statements are not guarantees of future results. It is not possible to invest directly in an index.
We believe the information contained in this material to be reliable and have sought to take reasonable care in its preparation; however, we do not represent or warrant its accuracy, reliability or completeness, or accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this material. Any securities referenced are shown for illustrative purposes only, and are not intended as a recommendation or endorsement by Visdom or by the author(s) in this context. The information presented is not intended to be making value judgments on the preferred outcome of any government decision. This information does not constitute Visdom research, nor should it be considered a recommendation of a particular investment strategy or an offer or solicitation for the purchase or sale of any financial instrument. Investing involves market risk, including the possible loss of principal. You should speak to your financial advisor before making any investment decisions. Visdom and its affiliates do not provide legal, tax or account advice so you should seek professional guidance if you have questions.
