Asks Joe to talk through what he's watching given recent volatility and Friday optimism.
Sam
Joe Mazzola
Key question is whether markets can hold Friday gains, noting pattern of weekend selling for geopolitical hedging. Markets pulling back slightly; need to get back above 6800 level.
Joe Mazzola
Technical weakness: 20-day MAs below 50-day MAs for major indexes, indicating short-term weakness.
Notes EPFR data showing $13.2B inflows to global stocks, Japan/Korea inflows, but outflows from gold, crypto, financials (record), and tech (first outflow in 7 weeks). Asks what fund flows indicate.
Sam
Joe Mazzola
Weakness in European/Asian stocks that were leaders; US financials in correction (>10% down) due to consumer fear, slowing personal income, and GDP expectations.
Asks which sectors/areas stand out given headline resilience vs. violent churn beneath surface, referencing semi/software spread conversation.
Sam
Joe Mazzola
Market breadth weak: only 30% of stocks above 50-day MA. Software carrying mantle due to bottom-fishing after being down 25% YTD. Investor sentiment weakening.