US stocks and, in particular, tech struggled overnight as the market was refreshingly driven by corporate news flow as opposed to speculation around interest rates, but there was some major volatility under the hood, e.g. Salesforce -20%, Dell -15% (after hours) Kohl dept. store -23%, HP +17%, Footlocker +15%, Best Buy +13%, Dell -15% and Birkenstock +12%. As MM has alluded to recently, “Hold on tight; volatility is set to increase in both directions”.
- We are still looking for the NASDAQ to break 19,000, but the risk/reward isn’t attractive around current levels.
MM is neutral on US stocks short-term
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Brent crude slipped over 2% on Thursday night (AEST), although the Energy Sector managed to edge higher. Oil has been in the same trading range for almost 2 years; there’s no reason yet to think this sideways trend won’t persist into Christmas.
- We believe crude oil is “looking for low”, but there are no triggers/catalysts to believe it’s yet in place.
MM is neutral crude, around $US80
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