Market Journal: EOD Update and Other Musings

AAPL and AMZN represent upside “gap risk”? Really? Focus on NFP.

Discussion

Since the mid-day update, cross-asset evidence shifted in a modestly bullish direction with defensive sector relative strength flagging, NDX relative strength firming, VVIX selling off a bit, and rates consolidating. But this bullish shift was nothing like the early July intra-day move in the wake of a stronger than expected ADP report. Today was a relatively flaccid attempt by bulls to engineer their patented late day 0DTE squeeze.

There’s chatter across “FinTwit” that AAPL and AMZN earnings tomorrow represent upside “gap risk” for shorts, hence the stabilization of indices toward EOD. If that’s the bull case, I’m happy to take the other side of that.