Looking back on the worst weekly stock market rollercoaster since the days of covid, Goldman trader Mike Washington looks back on a "nauseating week stuck in a macro-driven chop."
Despite today's meltup, which saw the biggest S&P jump since the Trump election, posturing still leans defensive with feedback to the Goldman trader suggesting the market is testing the 'pain point' for policy and that the Trump Put hasn't been removed from market, just re-struck lower. On the other hand, the good news for the bulls is that there is plenty of oversold conditions out there. Still, although it feels like most of the acute damage is behind us (and certainly the bulk of the CTA selling), the market is lacking a clear catalyst and Goldman sees build-up of scar tissue post a series of market fades.
Some stats: on the week: the S&P was down 2.3% (same as the Equal Weight SPX -2.3%), NDX -2.5%, RTY -1.8% while yields a touch higher (10yr +21bps @ 4.31%). Momentum (GSP1MOMO) and HF VIP vs Most Short (GSPRHVMS) both rebounded ~400bps.
