Nasdaq > 15500 Ball in Bulls Court Now
Just a quick post here of our trackers and a current Nasdaq futures chart. The shorts should be capitulating now into month end as the Nasdaq has now retaken the the 15500 level and bulls are hoping the same buyside algo that pushed from March lows is now in play. No doubt the PBOC injections and lower rates are spilling over to fund this new found risk capital being put to work here in US markets. Anyway here is the Nasdaq futures currently:
We will be back later with more, and this mornings Headline PCE number was on the screws at 3.3% YoY. We don’t think this number is as important as the upcoming payroll report tomorrow, so will see what happens. A close back below 15500 for the bears and maintain above for the bulls right now. Month end buying could be the factor here, so we would rather see how tomorrow closes out before saying this current downtrend is over.
As far as the trackers and settlements from yesterday:
Here is the GFBP with no changes:
The MEGA8s continue to forge ahead:
Speaking of MEGA8s, we keep seeing this Albert Edwards chart being tossed around, and we commented on it a few letters back. What it shows is that corporate net interest payments as a % of profits has plunged. This shouldn’t really be surprise considering all the tech MEGA8s that issued debt issued it at longer durations and at super low ZIRP style levels. However that decade is over and any durations post 2020 shorter than 4 years is about to reset and we suspect as the next year rolls on, this red line in the chart will begin its ascent higher once again…Its just too early in the rollover period for most corps, but 2024-2026 will be very different! This does however add to the validation of why the MEGA8s have taken the spotlight and the majority of all the equity gains!
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