{"id":1459002,"date":"2024-02-23T21:00:00","date_gmt":"2024-02-24T02:00:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1459002"},"modified":"2024-02-23T21:00:00","modified_gmt":"2024-02-24T02:00:00","slug":"best-week-for-bullion-in-2024-as-mega-caps-melt-up-on-bad-breadth","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/best-week-for-bullion-in-2024-as-mega-caps-melt-up-on-bad-breadth\/1459002\/","title":{"rendered":"Best Week For Bullion In 2024 As Mega-Caps Melt-Up On Bad Breadth"},"content":{"rendered":"

Best Week For Bullion In 2024 As Mega-Caps Melt-Up On Bad Breadth<\/span><\/p>\n

\n

Ok, so everyone knows, NVDA is awesome, topping $2 trillion in market cap intraday this week (after a $2BN hike above consensus)…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

…but today saw a smidge of profit-taking…<\/p>\n

<\/a><\/p>\n

MAG7 stocks were obviously up on the week (the sixth in the last seven), but today’s weakness took the basket back below its prior record high…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

There’s no way, right?<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Small Caps ended the week down around 1% while the rest of the majors surged 1.5-2% on this holiday-shortened week…<\/p>\n

<\/a><\/p>\n

And the best-performing sector of the week was… drum roll please… NOT tech. <\/strong>Consumer Staples were best, energy worst (but green), and Technology middle of the pack…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Bonds were bid to end the week with the long-end outperforming overall and the curve flattening around the 5Y…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

The yield curve (2s30s) flattened bigly on the week to its most inverted since 2023…<\/strong><\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Rate-cut expectations for 2024 continued to slide, now at just a 30% chance of 4 cuts (70% of 3)…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

…and June is now the favored month for rate-cuts to start…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

But stocks don’t care about The Fed… for now…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Macro data continued to strengthen – just as we said it would given the lagged impact of the massive loosening of financial conditions…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Gold ended the week with its best day in February, up 6 of the last 7 days to close at the highs sine the start of the month…<\/strong><\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

The dollar drifted lower on the week, but recovered from an ugly overnight puke on Wednesday<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Bitcoin drifted lower this week…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Despite solid net inflow from ETFs…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

While bitcoin was down, ethereum significantly outperformed, topping $3,000 during the week. This dragged ETH up to one-month highs relative to BTC…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Oil prices tested up to January’s highs (WTI $79) before fading back lower today and lower on the week…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Finally, under the hood, it’s kinda worrying…<\/p>\n

the S&P jumped more than 2% on Thursday as investors cheered blowout results from\u00a0Nvidia Corp., even though only 73% of its members advanced. That\u2019s the lowest participation for an up day of this magnitude since the immediate aftermath of the 2020 election, <\/strong>when the S&P 500 gained 2.2% while only 47% of its members went up. Since then, 2% up days have been accompanied by an upward move in 92% of its stocks<\/strong>, on average, data compiled by Bloomberg show.<\/p>\n

<\/a><\/p>\n

As Jason Goepfert noted on X,<\/a> the performance divergence between the S&P 500 Index and individual stocks on the New York Stock Exchange was even more extreme. The index\u2019s 2.1% rally came as less than 60% of stocks on the New York Stock Exchange advanced. The mismatch was seen just three other times in the past 60 years – 1987, 2008 and 2020, data compiled by Sentimentrader show.<\/strong><\/p>\n

<\/a><\/p>\n

The Arms Index, also called\u00a0the Short-Term Trading Index, or TRIN, compares the number of advancing and declining stocks to advancing and declining volume. Readings below 0.5 historically suggest there\u2019s more demand for shares since <\/strong>that would mean volume is higher in the average up stock than down ones, while a move above 2.0 is a sign investors are dumping equities, <\/strong>according to market technicians. Following Thursday\u2019s rally, it sat at a level of 1.3, meaning buying pressure was still well off its peak from late last year.<\/p>\n

<\/a><\/p>\n

And as Nomura’s Charlie McElligott noted earlier<\/a>, the most analogous week to this week, just happens to be 1\/7\/2000 <\/strong>(in terms of spot, vol, and breadth moves).<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nFri, 02\/23\/2024 – 16:00<\/span><\/p>\n

\u200bRead More<\/a>\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Best Week For Bullion In 2024 As Mega-Caps Melt-Up On Bad Breadth Ok, so everyone knows, NVDA is awesome, topping $2 trillion in market cap…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1459002","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-67yi","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1459002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1459002"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1459002\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1459002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1459002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1459002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}