No sooner did the Trump White House issue its list of China trade tariffs than China responded, after hours:
As always, don't take my word for it:
ZH: $100 Billion Forced Sale At 2535
"at 2535...the current “43% long” gaps through “neutral” and all the way to outright “MAX SHORT”—which then would require a notional deleveraging of SPX closer to ~ $100B."
"Thematically, longs in both “cyclical growth” AND “secular growth” are again massively underperforming consensual underweights / shorts in “defensives,” which of course rally alongside bonds and are thus viewed as “low vol / low risk.”
"we are increasingly ‘AT’ OR ‘NEAR’ PRICE-INFLECTIONS across equities, fixed-income and commodities…which just-happens to coincide with the slowing in global data."
"Investors bought up protection in early March, and cashed out as the downside move materialized"