Big Down Move, Political Tensions and Inverted Yield: Don't Miss a Dramatic Week in the Market
By:Ryan Gaynor
Chris Vecchio discusses the Russell 2000's recent outperformance vs. the Nasdaq, noting historical precedents of bull market behavior following such rotations.
However, there’s debate about whether this signals a new bull market, or a sector rotation driven by tech profit-taking. Vecchio highlights significant exchange-traded fund (ETF) inflows into the Russell 2000 and outflows from the Technology Select Sector SPDR (XLK), indicating strategic repositioning. Tom Sosnoff and Tony Battista Discuss their past and how they feel about the market due to what they have seen in there many years trading.
In this week’s Options Jive presentation, Tom Sosnoff and Tony Battista reviewed the morning's market movements: E-Mini S&Ps down 56, NASDAQ down 300, Russell down 19 and Dow down 120. They discussed whether an inverted yield curve—a condition where short-term rates exceed long-term rates—signals an impending recession. The consensus was it doesn't reliably predict market performance or economic downturns. They emphasized focusing on trading opportunities instead of macroeconomic speculation, aligning with tastytrade’s philosophy of market randomness.
Tom Sosnoff and Dylan Ratigan discussed recent market movements and political influences. They emphasized small position sizes, typically no more than 5%-7%, and advocated discipline in trading. Sosnoff attributed the recent Russell rally to performance normalization without a specific catalyst. They talked about the possible impact of political shifts on the markets and suggested Vice President Kamala Harris might replace President Joe Biden. Sosnoff dismissed concern about former President Donald Trump’s advocacy of tariffs.
Ryan Gaynor is a video content specialist at tastylive.
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