Watching Tech Reversal and Bank Resilience Post-CPI
Bit of a whipsaw week, eh? CPI print came in mostly as expected, which seemed to dial back some of the more extreme hawkish Fed bets. Saw a decent bounce in some of the growth names, but it feels tentative. On my watchlist, still seeing a fair bit of divergence. $TCEHY sliding back to $55.35 is interesting after its brief push. It's not falling off a cliff, but the selling pressure suggests some aren't convinced about a sustained tech rebound yet. Same for $AIQ, down to $61.85, the intra-day swings are wild.
Conversely, the banks like $BAC holding strong at $58.73, despite the broader market jitters, suggests capital is rotating towards perceived stability or value. That daily range, $57.94–$59, shows it's finding buyers on dips. It makes me wonder if we're in for a sustained period where financial sector resilience is the play, while parts of tech might struggle for direction until we get more clarity on rates. Still keeping an eye on the macro picture, obviously, but the sector rotation is becoming more pronounced.
The "tentative bounce" indeed. It feels less like conviction and more like a relief rally that could easily unwind. TCEHY's continued slide is a good example; even less hawkish bets aren't necessarily translating to strong buying pressure in riskier assets.