Weekly plan 11/27
Hello traders,
I hope you had a great long weekend.
Really not much happened over the last week as market stayed rangebound and took a breather from the wild rally we saw since end of October.
In the current market narrative, the tale unfolds with equity markets, particularly the S&P 500, completely in the control of bullish forces. The S&P 500 stands on the threshold of eclipsing its zeniths of July, flirting with the prospect of scaling unprecedented heights. Meanwhile, the tech sector faced a Herculean challenge last week, encountering formidable headwinds. For these tech titans to transcend their autumnal 2021 peaks, a Herculean influx of trading volume is indispensable.
In this market odyssey, the 'Magnificent Seven' - Apple, Microsoft, Google, Amazon, NVIDIA, Meta, and Tesla - emerge as the protagonists wielding colossal influence. They collectively shoulder a significant 28% of the S&P 500 index’s weight. Their dominion extends further in the Nasdaq 100, where they command nearly half of the index's weight, a critical lever in the Nasdaq 100's staggering ascent of 47% this year.
Contrastingly, the saga of portfolio managers is one of trials and tribulations. The year has been a labyrinth of challenges, with many a manager wandering off the path of market performance. The recent weeks have unveiled a narrative twist - hedge funds, once masters of the market game, reporting losses in the realm of $43 billion.
Moving on,