Hello There! KeepItSimpleSubstack
Week 11 - SP500 Update
I highly recommend using the link to view these posts in a desktop browser. Substack limits the size of emails, and since I use a lot of images, some readers have been missing important data by only viewing the truncated email.
Everyone will automatically look at the red below but just take a little squidgy at the yellow. There are more than enough podcasts substacks etc talking about the red.
TL;DR
🚰 Utilities and 🛢️Energy holding up the best.
🏠 Real Estate and 🚜 Materials still in correction mode.
📲 Technology hello there...
How ironic for the next leg of the market to be led by what it is almost always led by..
Who knew…?
Are we seeing the same volatility dynamic playing out in oil as it has in gold?
Price up / Vol up drives two things. One is that the price can be driven further by options. Two systematic trend followers who may be long oil because their spreadsheet told them to be and not some macro bro. Depending on their strategy as volatility rises they also have to reduce their position size. This leaves an air pocket and a lack of buyers.
Remember 401k contributions and target date funds are not buying WTI futures contracts every payday like they do AMZN or NVDA et al.
Over the paywall I go more in-depth and paid subscribers can access grabs of the spreadsheets showing all 503 tickers in the SP500.
New user guide - Paid Portfolio Posts
Hot Takes with Hank
Think pieces!
