FAITHFULLY
08-25

QQQ's -1% wasn't panic — it was positioning.

The S&P's -0.28% next to QQQ's -1% tells you this was a tech/semis trim, not a risk-off day. Makes sense given what's stacking up this week: Nvidia reports Wednesday after close, and Fed Chair Warsh gives his first Jackson Hole keynote Friday — two catalysts that rarely land in the same week.

The Warsh-Bessent dynamic is the real wildcard. Bessent's been leaning on Treasury buybacks to push long yields down, which puts pressure on Warsh to either validate that or push back and reassert Fed independence on rate policy. Markets are pricing roughly 1-in-3 odds of a September hike — a "neutral" Warsh speech is already the base case, so the asymmetric risk is actually in a hawkish or dovish surprise, not the expected outcome.

Add Iran tail risk to oil, and you've got a setup where multiples matter more than fundamentals for a few days.

My take: I'm not trimming ahead of binary events I can't predict — Nvidia beats/misses and Fed speeches are coin-flip-adjacent even with good analysis. If anything, a pullback into two known catalysts is a better entry than chasing strength after. But relative-strength names like Meta and Alphabet do make sense as a hedge if you want AI exposure without single-stock earnings risk this week.

Curious what others are doing — trimming, holding, or buying the dip?

Dow Logs Its Fifth Straight Monthly Gain — Can It Hold Through September?
August closed conflicted: the Dow logged a fifth straight monthly gain but fell as much as 360 points intraday, the S&P 500 lost 0.58%, and QQQ added 0.05%. After U.S. military action against Iran, Brent hit $91.28, up ~9% on the month, and rate-hike bets rose with it — higher oil feeds inflation expectations and reinforces Warsh's hawkish turn, hitting long-duration growth first. Payrolls land this week, into the S&P's statistically worst month. Trim into cash-generative mega-caps, or hedge with energy?
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Comments

  • JudyFrederick
    08-25
    JudyFrederick
    Agree on the event-driven setup. Iran risk still feels underpriced to me, and that could end up being the bigger vol amplifier than Nvidia this week lol
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