The market opened the new week's trading session with fairly stable sentiment after 2 rally days last week. Tech stocks and especially the mega cap block continued to attract most of the money flow in an environment of significantly reduced liquidity in the morning. Tesla, Amazon and Meta were the 3 stocks carrying SPX close to 4500 after 3 early pull-backs with Tesla surging +9.5% just in the morning after announcing doubled market share in China, helping Morgan Stanley raise price target from $250 to $400.
Market volatility decreased quite clearly along with liquidity, indicating that most investors decided to sit out today's trading session. Looking further, most call positions from the AI Mania block in June/July have almost disappeared, creating a “lull” for the AI-tech block at both ends, keeping VIX generally low.
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