4/25 Strat Note: Volatility Spike & China Selloff To Key Levels. Strong MSFT and GOOG Earnings to Stave off The Bear.
After-Market Commentary for Members: China & FAAMG.
Members,
This is a quick message to build on top of the context discussed in my earlier Weekend Strategy note here where I discussed FAAMG and China.
Also, a warm welcome to all the new Members who joined us over the past week (there were many of you).
When market conditions are exceptionally volatile (like they were today), I will issue special additional notes like these.
Today during the market session, we are seeing the fear index (the VIX) make the largest spike since the banking turmoil - the SVB and First Republic saga - back in March 2023.
It appeared Bears had the upper hand by the close, but strong MSFT and GOOG earnings after the close may relieve Bulls. As I said in my previous note, I liked Google’s setup ahead of earnings. I wasn’t sure about MSFT so I didn’t make any comment on the name other than highlight Support & Resistance levels ahead of the earnings release.
In this short note, I want to provide a concise update on market conditions regarding U.S. and China themes I follow. The markets appear to be far less stable than they were just a few trading sessions ago.
This note will be most applicable to folks who follow/invest in the China Internet Sector. As well as the FAAMG theme.
On China Commentary - Are we approaching a tradable bottom in this sector?