DC Lite #170

Welcome back to DC Lite: Daily Chartbook’s free, entry-level newsletter containing 5 of the day’s best charts & insights. Upgrade to get all 30 charts.

1. Fed funds futures pricing. "For the 8th time in this rate cycle, the market has jumped the gun on a dovish pivot and we eventually see this pared back."

2. HF de-grossing. "The hedge fund de-grossing we've seen over the last several weeks has been the most significant in about a year."

3. Active funds vs. Momentum. "We believe potential de-grossing driven by growth concerns could also be more negative for Tech than cyclicals. People will likely sell what they own and Momentum stocks are ~30% overweight by long onlies."

4. ChatGPT vs. Netscape. "If we tie the release of ChatGPT in November 2022 to the release of the Netscape web browser in December 1994, the Nasdaq 100 is up about the same amount and we’re currently about 4 months from Alan Greenspan’s ‘Irrational Exuberance’ comment in December 1996."

5. Demand talk. "While still early, we’re seeing encouraging signs with mentions of weak demand during earnings calls falling to the lowest level since 3Q22."