Work backwards from today:
Fed head Bill Dudley hawkishly clarified that the Fed will simultaneously increase rates AND unwind the balance sheet - double tightening
Today's jobs reports came in 160,000 jobs lower than Wednesday's ADP report, corroborating this week's ISM report indicating the slowest jobs growth since last August
Stymied by his own Party, Trump initiated a new Keynesian stimulus program called "bomb Haji". Raytheon jumped 5% on the news
The Atlanta Fed slashed their First Quarter GDP estimate by 50% in one week from 1.2% to .6%
Suddenly, both tax reform and healthcare reform are dead
U.S. Oil inventories hit a new record high this week amid talk that Saudi Arabia is looking to begin another global price war
The Nasdaq peaked on Wednesday of this week, one month after the S&P peaked, which is the same pattern that occurred at the top in 2007
We learned that the smart money is record short and the dumb money is record long
U.S. Coal companies asked Trump NOT to renege on the Paris Climate Treaty because they will be shut out of global markets. Doh!
U.S. households now have almost the same amount of debt they had in 2008
Now, for the chart porn:
Nasdaq 100 Mega Crash chart
ZERO. I said 0, new mega cap highs today:
Why? Because Amazon has rolled over, deja vu of every other market implosion:
Oil
Long wick on today's daily key reversal?
Banks
$USDJPY
10 Year Yield
After the jobs report, the 10 year yield was all set to wipe out the remaining bond shorts, but then Bill Dudley spoke and forced short covering back the other way towards "reflation"...
For today that is...because next week it will sink in that the Fed itself is the biggest factor deflating the economy: jobs, GDP, loan growth, autos, retail, that stuff...
In other words, today just drove a bigger drop in correlation between long and short-term rates:
Speaking of market tops, here is TRIN - selling pressure:
Change of plans?
