In today’s mid-day wrap from Goldman, the market saw a sudden reversal after opening in the green, with the NDX and SPX indices falling by 185bps and 110bps, respectively. The large cap tech stocks were particularly weak, with NVDA down 312bps, MSFT down 250bps, AVGO down 465bps, and AMZN down 230bps. However, the RTY index outperformed, gaining only 50bps compared to the previous day’s gain of 50bps.

Commodities were a bright spot in today’s market, with gold and silver prices rebounding after two days of weakness. Gold gained 685bps, while silver gained 950bps. The correlation between momentum and gold is at a multi-year high, driven by the surge in mining stocks. The metals and mining industry is at its highest weight in years in Goldman’s Unconstrained Long/Short Momentum strategy (GSPRHIMO).

Activity levels on the floor are high, with an 8 out of 10 overall activity level and a 9% sell skew. Both hedge funds and long only portfolio managers have outsized sell skews, with HFs skewed 17% better for sales and LOs skewed 30% better for sales. The supply of stocks is concentrated in the info tech, consumer discretion, financials, and healthcare sectors, while demand is relatively insignificant in comms services and materials.

Overall, today’s market reversal and commodity rebound highlight the ongoing volatility and unpredictability of the market. As always, it’s important to stay informed and adapt to changing conditions to maximize returns.