Happy Wednesday, everyone. The next 48 hours are going to be awfully interesting, to say the least. First off, the European Manufacturing PMIs came out, and they don’t exact suggest boisterous global economic health. Here’s Germany, which just clocked in its three major disappointment in a row and is now in the shrinkage zone.
France is even worse.
Here in the good old USA, where our two remaining manufacturing powerhouses are accommodative easing and OnlyFans accounts, the market has been in slow bleed-out mode for the past few weeks, although so far this week it is relatively stable as it awaits the one-two punch of NVDA and Jackson Hole (for whatever THAT is going to be worth).
It bears repeating that I have no position in Nvidia, although a tumble would certainly be of aid to me. The analog between the 2021 mayhem (driven by crypto, I suppose) and the 2023 mayhem (driven by AI) is quite close, but analogs can often be dangerously seductive. I screeched out of my NVDA puts first thing on Monday morning, but I will be watching (from my airplane seat) with rapt attention after today’s close.
