LONG (BUY)
⚠️ Elevated Volatility; 3/5 position size
TP
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► Dell’s strong earnings report, together with markets stabilizing after the weak start to September - despite high yields, inflation concerns, geopolitical tensions, and higher oil prices, to name just some of the many headwinds - is resulting in a positive close.
► Strong gains in NVDA also supported the Nasdaq 100, which is closing moderately higher.
► The underlying fundamentals remain constructive and earnings have been strong - particularly in the AI sector. US economic activity has increased modestly over the past two months, with massive growth and strong demand in the data center sector in particular driving growth.
► The labor market showed only a few warning signs, while at the same time not coming in strong enough to significantly strengthen the case for further rate hikes.
► Further rate hikes are now largely priced in anyway. I also see only limited additional escalation potential in the Middle East - the market is already pricing in that the situation is unlikely to improve in the near term. US President Donald Trump said that the recent renewed attacks on Iran would likely be short-lived, while reiterating his claim that the US controls the strategically important Strait of Hormuz. There is really very little of what this administration says that can be trusted - but the comments at least help somewhat to reduce the upside pressure on energy prices.
► AMD is closing weak, partly because NVDA is performing particularly strongly today - which is not a meaningful headwind, but simply a rotation move. We are going LONG in AMD here just before the NYSE close.
AMD (AMD): Multiply your “standard (EUR/USD)” position size by approx. 40–50x (4,000%–5,000%) – 3/5 position size.
position code / 100% Transparency - 26090205A
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