Nvidia down 3%, Russell 2000 up 3%

Read full post at forexlive.com

Everyone
is
trying
to
make
sense
of
this
market
but
this
looks
like
position-squaring
to
me.

An
extremely
crowded
trade
has
been
to
buy
AI
(i.e.
NVDA)
and
short
rate-sensitive
stocks
(Russell
2000).
That’s
been
a
wonderful
trade
as
the
Russell
2000
languished
and
Nvidia
soared
to
briefly
become
the
most-valuable
stock
in
the
world.

The
trade
has
looked
like
a
blow-off
lately
and
there
is
some
real
angst
creeping
in
around
the
Fed,
inflation
and
growth.
That
may
have
led
to
a
rush
to
the
exits
today.
It
may
also
be
compounded
by
a
rush
into
stocks
that
benefit
from
lower
rates,
many
of
which
are
in
the
Russell
2000.

Looking
ahead,
I
wonder
if
this
kind
of
turmoil
argues
for
volatility,
which
has
been
depressed.