Inside Markets — Momentum Factor
Position squaring and hedging coming into today’s data are being unwound this morning as the CPI print came in ‘no worse than feared.’
Inside Markets — Supportive Data
The most significant events of the week are still to come with: 1) Powell’s testimony tomorrow and Thursday; 2) ECB policy decision on Thursday; 3) AVGO and MRVL earnings (check on AI optimism) Thursday after the close and; 4) the February Jobs Report on Friday.
Inside Markets — Events to Come
The most significant events of the week are still to come with: 1) Powell’s testimony tomorrow and Thursday; 2) ECB policy decision on Thursday; 3) AVGO and MRVL earnings (check on AI optimism) Thursday after the close and; 4) the February Jobs Report on Friday.
Inside Markets — Cyclical Recovery?
On Friday, the cyclically-sensitive RTY managed to close above our technical resistance number of 2070.
Inside Markets — Russell 2000
US equities are mostly higher with the small cap Russell 2000 (RTY) outperforming large cap indices for a second day.
Inside Markets — Holding Pattern
Markets remain in a holding pattern ahead of tomorrow’s January core PCE print and Friday’s ISM report.
Inside Markets — Narrow Leadership
The small-cap, cyclically-sensitive Russell 2000 (RTY) continues to trade beneath key range resistance near ~2070.
Inside Markets — Volatility and Breadth
OIS markets are now priced for 70bp of rate cuts in CY’24, which is now lower than the 75bp from the Fed’s dot plot
Inside Markets — Dovish Implications
There were no major surprises in yesterday’s release of FOMC meeting minutes, although some note dovish implications from advanced discussions on slowing the pace of QT.
Inside Markets — Momentum Factor
The momentum factor is unwinding at the moment with hedge fund and retail investor positioning metrics at/near record levels.