Ahead of Wednesday's Fed announcement, the Tech-based deflation trade is going bidless in favour of the fake-reflation trade (banks, energy, retail). Without one stock - Nvidia - the Nasdaq would have collapsed yesterday. The five biggest stocks by market cap were all down on the day. Adjusted for market cap, Nvidia traded 14x more dollar volume than Apple. In absolute terms, twice as much as the Nasdaq 100 ETF (QQQ):
Recall, the five largest tech stocks have driven 2017's market gains: Facebook, Amazon, Apple, Microsoft, Google
On the NYSE, only one stock matters:
EM Currencies are signalling that the China Tech rally is also ending:
Overnight...
Perfect timing:
As money finally rotates out of Amazon, leaving the "Amazon is taking over the world" narrative stranded, a new fake narrative has been invented to accompany late-cycle short-covering:
Because any blind man can see that going private has put a solid bid under that stock:
Oil and Gas stocks are in the implosion position:
In summary, the non-stop mixed messaging around reflation/deflation has produced a fatal combination of short-covering and pullback from growth stocks, which is deja vu of the last two RISK OFF episodes:
And which has left only one stock keeping the Nasdaq aloft, trading 2x more volume than the entire Nasdaq 100 ETF:
Prepare for island reversal of fortune that leaves all of the fake narratives stranded...
