Gluskin Sheff’s David Rosenberg summed it all up nicely…“Hmmm. Let’s see. Tariffs. Sharp bond selloff. Weak dollar policy. Massive twin deficits. New Fed Chairman. Cyclical inflationary pressures. Overvalued stock markets. Heightened volatility. Sounds eerily familiar (from someone who started his career on October 19th, 1987!).”
h/t Doug Kass
Only The Nasdaq remains green for 2018…
A very chaotic day across asset classes today amid headlines from Powell, Dudley, and Trump (note the post-Trade-War move sent USD, Bond yields, and stocks all lower together – a different regime from earlier in the day)…
While the blame for today’s tumble has been laid at Trump’s feet (for his trade war talk), we do note that both The Fed’s Powell (hawkish with comments about getting behind the curve on inflation) and Dudley (uber hawkish noting that 4 rate hikes is still gradual) went full hawk intraday and didn’t exactly help things…
Dow’s bounce stalled perfectly at 75%, then snapped back below Fib 68.2 and 50 and found support today at Fib 38.2…
Notably The S&P is down 1% for 3 straight days – the first time since the global growth scare in January 2016.
The week got ugly once Powell started…
VIX spiked to over 25 but was hit hard there…
VIX
But the VIX term structure remains inverted…
The S&P bounced at its 100DMA
Tech was hammered today with FANGs and AAPL making good use of buyback this afternoon…
Treasury yields tumbled today – with the entire curve now lower in yield on the week…
30Y Yields dropped to 3-week lows…
Breakevens were hammered lower again… smelling a lot like the VIXgeddon week’s moves…
