Financial News vs. Noise

Turned out to be a perfect news story to sum up the day....

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Bunch of stuff happened yesterday. Overnight you had comments from Ueda in Japan about tightening, you had a macro rotation out of stocks and into bonds, and you had ISM numbers with a slight miss and weak internals. After hours we got the news of NVDA getting a subpoena in an anti trust case. I can't overstate how chocked to the gills Wall Street is on NVDA. If this is a serious issue it's going to leave a mark.

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Nvidia Gets DOJ Subpoena in Escalating Antitrust Probe-Bloomberg

The DOJ, which had previously delivered questionnaires to companies, is now sending legally binding requests that oblige recipients to provide information, according to people familiar with the investigation. That takes the government a step closer to launching a formal complaint.

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From Jefferies this morning on comparisons between yesterday and early August....

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Parallels are being drawn with the early August price action. One key difference between early August and now is positioning. End July/early August positioning was very long in risky assets. Now positioning is fairly clean apart from some retail longs in specific Tech stocks. Hence, we do not think that the market would face a similar order of moves as we had in early August.

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All this makes the payroll data this week even more important. I did take advantage of the heightened volatility with some calendar spreads on SPY.

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SPY tested the 50 day and held. That could be a good spot for traders to decide whether to be long or short.

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QQQs look ugly. There is some support in the 455s....

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Small caps (IWM) also look to be testing the 50 day....

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I bought the dip in NVO yesterday....

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Novo Nordisk’s Ozempic Shortage Is Worsening. That’s Good for Eli Lilly Stock.-Barron's

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On Monday, Denmark-based Novo Nordisk said the shortage of Ozempic has not only worsened but will persist into the fourth quarter. The drug maker is also struggling with a shortage of Wegovy, its weight-loss equivalent of Ozempic.

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Sitting on support at the 10 day and the 50 day as a potential stop for swing traders.