Deja vu of New Year's 2016, the Global Santa Rally is ending, except this time around the Fed and Trump are taking active steps to implode China. And it's working...
The jobs report is out and it massively exceeded estimates, however Powell whispered sweet nothings to get the casino to fully overbought...
"We don't believe that our issuance is an important part of the story of the market turbulence that began in the fourth quarter of last year...But I'll say again, if we reach a different conclusion, we wouldn't hesitate to make a change."
In discussing his obvious (in)"flexibility" towards imploding global markets, here is another choice comment:
"No one knows whether this year will be like 2016...markets are pricing in "downside risks," particularly in the slowdown from China. He said the market is "obviously well ahead of the data"
Which means that the market is well ahead of the Fed. But fortunately the Fed is right, not the markets.
Now we know the Fed's balance sheet rolloff has nothing to do with dislocation, so rolloff will continue until it does become a problem. And then they will jump in a time machine and go back a few weeks...
The NYSE breadth oscillator is now back to fully overbought:
Lagging small caps caught the January effect
Speaking of China, policy-makers there are trying to figure out how to piece back together a shattered bubble:
Speaking of China, policy-makers there are trying to figure out how to piece back together a shattered bubble:
"Beijing has been stepping up its efforts in stimulating growth, which is decelerating quickly amid the trade war with the United States."
"No one knows whether this year will be like 2016"
Not to worry, this won't be anything like 2016
