Take your pick of the headline chaos today – from China (delaying deals), Comey (book bullshit), Rosenstein (recusal and rumors of being fired), Mueller (no fucking idea), Syria (US moves another ship into Med, Syria threatens response), and Russia (proof UK was responsible for chemical attack); to Fed speakers (worried about the yield curve’s flattening) to slumping sentiment (UMIch tumbled most in 18 months) – and stocks slid after a strong week…
Futures markets show the dramatic swings more completely…NOTE The Dow and S&P closed back below the ledge from last week when Trump demanded $100bn in tariffs…
Stock tumbled late in the day today, but were duly rescued by the standard VIS crush into the close.. because why wouldn’t you dump protection ahead of a weekend loaded with the possibility of a Trump Tomahawk Tirade…
The Big Banks were ugly today after everyone proclaimed their earnings were awesome…
And The Small Banks continues to underperform along with the yield curve…
Boeing dumped after headlines on Russian retaliation…
On the bright side, pot stocks jumped…
Bonds and Stocks decoupled on the week…
Treasury yields were higher on the week but the long-end dramatically outperformed…
Which sent 2s30s curve to a new 11 year flat…its down 16bps since The Fed hiked rates…
And 2s10s is now holding well below 50bps…
The Dollar Index fell after two weeks of gains to its lowest weekly close in two months…
Of course it was a big week for the Ruble…
