Well, that rebound was much faster than expected. The stock market is back in bull mode after some good earnings releases over the past few days. Investors expecting the worst from companies like Alphabet & Facebook noted that the ad market slowdown wasn’t as bad. In addition, the companies were buying back stock providing a floor on the prices. So, the largest companies in the world are holding up the market pretty well.
The central bank panic also seems to have taken care of vol spike we saw in March. Vol is now down to the lows-to-mid-30s…and the US Fed after a massive expansion in balance sheet has started reducing the pace. It will be interesting to see what the next move will be from the central bankers as the world is used to getting a new hit everytime the last round of drugs wear off.Continue reading