Baltimore bridge tragedy was largely ignored by the stock market: Scott Redler

Let’s get to what Scott Redler he is the T3 trading Chief Strategist. Scott, no market impact today thus far having to do with this. There are other factors you know but but what do you make of these so-called Black Swan developments, something that comes out of nowhere dismissed early on might be perfectly justified to dismiss as far as its economic impact. But what about you when you gauge what to buy, what not to buy, whether this is noise, what? Well, what you want to do is you want to see the reaction to an event that you didn’t think could happen or a Black Swan or just out of the blue. And then what the market does is it trades and lets you know potentially, you know, does it mean something or not mean something. And we’ve had a lot of Black Swan type events or geopolitical scenarios whether you want to say you know the war in the Ukraine that’s been going on now for almost what two years or so and the market cared for a few weeks and then it just forgot about it. Then you had the horrendous event in in Israel back in October market for about a day showed volatility and then gather itself and we just hit an all time high in the S&P cash last week. So some of these time you know events change something materially, some things sometimes it’s emotional. It’s up to the market participant to know their time frame on whether or not they need to change their investment strategy or if there are ways to, I hate to say unfortunately make some money from the misallocations of that day’s over emotion and as traders that’s what we look for to see if there’s over emotion. As of right now, you know the Baltimore event as tragic as it is then the market kind of ignored it. Well you know tomorrow we wrap up the month and the quarter, it’s been a very good quarter, been a respectable month particularly for the S&P 500 up about 9% during this period. I’m just wondering what you make of what the start of the year looks like. Well, if you would have said that rates at 10 year would still be at 4.2% and that we weren’t going to cut rates until maybe June, I would not think that the S&P would be up 9%. But the market does what the market wants to do. So you have to adjust. At this point we’re up 9%. So we probably stole a little bit away from the gains for the rest of the year. But now you have to figure out, you know where do we go from here. You have to measure the action of certain sectors, certain sectors, where do you measure, where do you measure now? Do you look for example at technology, Do you look at some of these others that have been great runners? I noticed NVIDIA and some of these favorite plays are under a little bit of pressure here, but one day does not a trend bank obviously, but what how do you play that? Well, it depends on how active you are. You know NVIDIA hit a high of 974 and we kind of knew that it would come under pressure as they try and rebalance the trade. Also at the end of the day, people or the traders have seen that we’ve had sell imbalances the last hour because there’s $33 billion for sale and equities to kind of rebalance the trade between bonds and the S&P and that usually happens in the last week. So you can’t make too much of that action. You more make the action, the action. The first week you see where flows are going, you see where the action is and then you see if new trades or new trends develop. So I would say, I would think NVIDIA should hold in the 870 area. That would be a normal pullback. If you see today Apple, Apple is having a good day because it underperformed this quarter. So it’s getting a little bit of flows to deliver version to the mean. But a lot of this is just trading and it’s more day-to-day action for active traders doesn’t mean next month it’s going to fully change. And in the first week, you know, it kind of tips its hat on, on where you need to be focused. And I do think the small caps, you know, have been very, very, what’s the word impressive considering everyone says you have to have lower rates for small caps. And the IWM is trading near two O 7 and had a decent quarter and and and interest rates are still relatively elevated. But there is that to your point, a chasm between how the small stocks are doing versus the big guys, maybe that that gap widens but or or narrows. Scott, very good seeing you. Thank you very much. Thanks for having me.