DK

long term investor looking out into the future

[PhotonBull @PhotonBull]

Seeing some confusion about the price movements at the last 10 minutes or so

$SNDK for example had quite a steep drop (3.5%)

This is due to the rebalancing at the end of the quarter.

End of quarter rebalancing is the process where institutional investors, index funds, and ETFs adjust their holdings back to target allocations as a calendar quarter closes.

Pension funds and balanced strategies that drifted overweight equities after a strong run will sell winners and buy laggards to restore mandated weightings, while index trackers reshuffle to match any constituent changes announced for the new quarter.

The mechanical nature creates flows that have little to do with fundamentals. A stock that ran up in the last three months will face selling pressure simply because allocation models now flag it as too large a position.

The opposite holds for beaten down names that get topped back up. This is why you sometimes see sharp moves into the final days of March, June, September, and December that reverse early in the following month.

[Christian Fromhertz 🇺🇸 @cfromhertz]

when folks hear Russell rebalance they think small caps

but Russell manages many large cap indices too i.e. $IWD $IWF so not just Small Cap moves

[Christian Fromhertz 🇺🇸 @cfromhertz]

everyone should know this and be making adjustments

bounces fail b/c we are
- a very weak seasonal time of year
- CTAs are selling
- Pension Fund have a boat load of selling to do this end of month

The Positive:
- July is a super strong seasonal month

no one has a crystal ball but I would go w/ the flow instead of fighting it and get more optimistic turn of month

***one other note, today is the Russell Rebalance - $IWM $IWD $IWO $IWF $IWN so expect whippy moves end of day

[DK @ballerdk22]

@cfromhertz Right on

[DK @ballerdk22]

@MartyChargin Yup you’re right I can only imagine how much more I would be up if nasdaq was having a positive month

[DK @ballerdk22]

Nasdaq was horrible today but they did buy right at the end of the day and I had the largest one day gain ever. If nasdaq was green I would have had a six figure day but I’ll take it!

[DK @ballerdk22]

@TradexWhisperer Your call would have been 6.2 then lol

[DK @ballerdk22]

@The_AI_Investor $tsla is ridiculous doesn’t deserve the price its at, if the market is wrong about $tsla its going to get rocked

[DK @ballerdk22]

@WisemanCap @GrindeOptions Same brother lol

[DK @ballerdk22]

Started a position in $nbis and closed out my $be position

[DK @ballerdk22]

@hamids About time they do geez

[DK @ballerdk22]

@801010athlete Absolutely nuts how fast it can move

[DK @ballerdk22]

@TradexWhisperer None but I find your info valuable and it reinforces my own research also

[DK @ballerdk22]

@RealSimpleAriel @saylor @fundstrat

[DK @ballerdk22]

@801010athlete Going much higher tomorrow and in the future $mu

[DK @ballerdk22]

@RealSimpleAriel @cfromhertz I hear $2000

[DK @ballerdk22]

@JonahLupton I calculate eps will be closer to $150 to $160 for a full year next year

[DK @ballerdk22]

@StockMarketNerd When you use the word elite, I already know it was a good quarter, you don’t use that word lightly