We have pointed out on the pages of this note that the interpretation of a news item or development can greatly diverge in a rising from a falling market. Stock draws, wildfires close to oil producing regions or economic buoyancy might be dismissed when the underlying backdrop is sanguine but could provide the perfect excuse to cover short positions after a few days of heavy retreat.
Investors seem somewhat disconsolate as the suspected over-expectation of the tech stock mega-caps sees a very crowded ownership lightening up, and because of the nature and powerful influence projected by the likes of Tesla and Alphabet/Google and yet to report peers, markets feel an uncomfortable dose of reality. A check back in the world's bourses is not just from an over-cooked fraternity alone.
To quote Vladimir Ilyich Lenin, ‘There are decades where nothing happens; and there are weeks when decades happen’. And boy, what turbulent last few weeks we have witnessed in US politics. It all started with the Presidential debate, a near-suicide for the Democratic party and culminated in the incumbent removing himself from the top of the ticket throwing an ostensible lifeline for the donkeys.
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