Judging by today’s VIX crush and USD/JPY ramp, this was the sound coming from The Eccles Building…
8 years ago today, the S&P 500 bottomed at 666…S&P earnings are up 78% since then.. and the S&P is up 247%
The Dow bottomed on 03/09/09 at 6547 – 30Y yields were at 3.57%; The Dow is now at 21,000 and 30Y yields at 3.10%… (and the 2s30s yield curve has collapsed from 260bps to 175bps)
Something very different today: Bonds and stocks were sold together (same as happened on Thursday but much more pronounced)
And Risk Parity funds had their worst 2-day drop since mid-December…
On the day, Trannies and Small Caps were worst…
Despite desperate efforts to ramp USDJPY and crash VIX, stocks could not get green…
Notably, Small Caps slipped back into the ‘old range’…
Financials (red) had their worst 3-day drop in 7 weeks… almost filling the gap from last week’s melt up…
Snap cracked…then dropped and has erased all of its post-IPO gains…
And Camera-on-a-Stick crashed to new record lows (on the heels of a Goldman downgrade)
Bonds sold off into and through the US open but once Europe closed a bid reappeared…2Y ended unch
The Dollar rose on the day led by notably cable weakness…
Crude clung to unchanged (despite USD strength), Copper plunged on China lower growth, PMs drifted lower…
Finally – a quick question – who does The Fed work for? Main Street or Wall Street?
Real earnings are up 2.5% off the 2009 lows, The Dow is up 210%
