The story of the week, according to Goldman Sachs head of hedge fund coverage, Tony Pasquariello, is simple: within a high velocity trading environment, S&P took out the highs.
Ex post, the drivers are clear.
One part was micro: Q4 earnings have been a strong tailwind for the market ... we saw it in the banks last week, and we saw it in select single names this week (most notable was NFLX).
One part was flow-of-funds: positioning in the fast money community was notably defensive through mid-January ... that has inflected towards the positive side.
And one part, of course, was politics: the come out roll on tariffs wasn’t as rough as expected ... and the Stargate announcement poured incremental fuel into the tech space.
