Right now the market is trying to price in rate cuts. Rate cuts = Bond yields going down and that'll put the "growth" trade back on the table. People are buying tech in anticipation of the rate cut announcement. This will probably be the case until the Fed/Jpow/some speaker comes out and claps down on the market to get yields going back up BUT until that happens... we pricing in rate cuts>lower yields>tech stocks go uppies.
Now the game plan right now should be: Go upside until Fed speak talks up the yields to put pressure on tech again. IF the Fed shows any further easing or cut possibilities.... go hard upside until next Fed speak. IF Fed comes out firing, touting higher for longer, no chance of cuts, etc.... careful with the upside.
bobstaman t1_je6vwoc wrote
Reply to Thoughts on why Big Tech has been rallying and if it’s sustainable? by vwxyzabcdef
Right now the market is trying to price in rate cuts. Rate cuts = Bond yields going down and that'll put the "growth" trade back on the table. People are buying tech in anticipation of the rate cut announcement. This will probably be the case until the Fed/Jpow/some speaker comes out and claps down on the market to get yields going back up BUT until that happens... we pricing in rate cuts>lower yields>tech stocks go uppies.
Now the game plan right now should be: Go upside until Fed speak talks up the yields to put pressure on tech again. IF the Fed shows any further easing or cut possibilities.... go hard upside until next Fed speak. IF Fed comes out firing, touting higher for longer, no chance of cuts, etc.... careful with the upside.