Discussion about this post

User's avatar
illuminati seed's avatar

Nobody paying attention to the fact that institutions/hedge funds have been dumping FAANG's/Mega Cap stocks that hold the weight (true value) of SPX by roughly 30%...and placing that money into small-mid caps that hold very low liquidity. Even just a small rise in risk can put pressure on the overall market, and the 10YY has climbed only 2 bps since the bond market rallied yesterday.

Moving cash into low liquid stocks is extremely high risk when bond yields become bullish in the slightest, because not only is money moving out of what makes 30% of the overall market value, but also profit taking in where new money is being placed. If anyone ever saw this as being bullish, you weren't paying attention to the divergence of SPX and the FAANG's the last several trading days. It clearly showed instability.

Expand full comment
Kevin's avatar

Whenever Crammer speaks, put on your boots otherwise you will be "knee deep" in Bull Shit.

Expand full comment
51 more comments...

No posts