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Blackshore’s Substack
Blackshore’s Substack
Mid-Week Recap
Market Data and Analysis

Mid-Week Recap

Taking a look at the reactions post FOMC

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Blackshore Research
Jul 31, 2024
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Blackshore’s Substack
Blackshore’s Substack
Mid-Week Recap
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Hello everyone,

The market's "pain trade" persists, with a notable spread of over 160 basis points between the Nasdaq (NQ) and the Russell 2000 (RTY) yesterday. This divergence is driven by investors reducing their positions in crowded tech stocks and small-caps while leveraging these sectors as funding shorts, resulting in a significant spread.

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