The Gilmo Report

June 6, 2021

June 5, 2021 3:04 pm ET

The Fed announced on Wednesday evening that it would begin selling the corporate bonds and bond ETFs it bought last year to allegedly keep the corporate bond market functioning. That was taken as a sign that the Fed was doing just a little bit more than thinking about thinking about tapering, and high-PE NASDAQ names were pummeled in response, sending the NASDAQ Composite Index gapping below its 50-day moving average on heavy volume.

Friday’s jobs number came in at 559,000 jobs recovered vs. expectations of 740,000, quickly changing investors’ minds about the whole thinking-about-thinking-about-tapering thing and sending tech/growth stocks back to the upside. And so, the week ended with a shakeout at the 50-day moving average for the NASDAQ Composite, albeit on light volume.

 

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