US stocks edged higher overnight led by the Tech Sector, software business NVIDIA Corp (NVDA US) closed up +2.2% contributing the most number of points to the S&P500 in the process. The AFR described the market as being in a state of flux and this has felt on point of late, our preferred scenario is still the S&P500 makes fresh highs back above 4200 but failure into such strength wouldn’t surprise MM and we remain very open-minded as to what comes next.
- No change, we believe the risk/reward currently favours selling strength as opposed to chasing any breakouts on the upside.
MM is neutral toward US stocks medium term
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The US Regional Banking stocks have started to absorb potentially bad news and after plunging over 65% we believe the sector is looking for, or may have found a short-term low. The read-through from this opinion is that the negative external influences that have washed through global banks are likely to be diminishing fast.
- We now believe the next 15-20% move for the regional banks is more likely on the upside – nothing major in the context of the last 16 months.
MM is bullish towards US regional banks’ short-term
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