* We remain short a basket of high-beta, high-tech equities that may benefit from questions regarding memory and semis, among other factors…
OpenAI proposes handing Trump administration 5% stake
For over 1 1/2 years, in “More Tales”, I have been writing and warning about OpenAI’s financial risks:
Position: Short High-Tech Basket
I watched no fewer than 10 confident money managers herald the future of regional bank stocks on CNBC yesterday.
Here is an alternative view:
Extend And Pretend Eventually Comes To An End
Position: None
There were two important observations regarding sector movements on Wednesday, including the obviously large-sized drop in memory and chip stocks (We are short many of these in our High-Beta Tech Short Basket).
But less obvious (apologies to The Princess Bride’s Vizzini) was the drop in Walmart’s ($WMT) share price:
108.82-4.44 (-3.92%)
At close: July 1 at 4:00:01 PM EDT
109.52+0.70(+0.64%)
The consumer is spent up, not pent up.
Position: Short High-Beta Tech Basket
We are short a number of mo mo equities, including several ETFs that are momentum based.
Position: Short High-Beta Tech Basket; JOET (S)
The S&P Short Range Oscillator remains slightly overbought at 1.58% vs. 1.34%.
It’s been range bound for weeks around this level.
I covered some of my SPY on futures weakness (-22 handles) last night.
Moved from medium sized to very small sized.
Position: Short SPY (VS)
After-Hours % Advancers
After-Hours % Decliners
Position: None
As the first trading day of July brought positive action, the bulls got a bit too excited.
Closing Volume
– NYSE volume 2% below its one-month average
– NASDAQ volume 22% below its one-month average
– VIX index: up 0.85% to 16.59
Breadth
S&P 500 Sectors
% Movers
Nasdaq 100 Heat Map
Closing S&P 500 Heat Map
Position: None
