But first, the fate of global markets now hangs on a photo-op between Trump and Xi. What could go wrong? As usual, bulls did not wait until Monday to get the answer, they panic bid the S&P 500 130 points this week ahead of this weekend's summit. 1100 Dow points on the week:
Today/Friday:
The casino closed nearly unchanged for the month of November despite massive intra-month volatility. The real story of the month was the collapse in crude oil.
The largest since October 2008. Is anybody home?
The only thing that stopped the decline was a short-covering rally ahead of the December 6th, OPEC meeting.
Here we see the casino unch in November - started the month at the 200 day and ended at the 200 day.
With all of the short-covering and Santa Rally euphoria Skynet
was able to give the illusion of control this past week, compliments of a 130 point panic rally ahead of this week's summit:
Getting back to the theme of this post - capitulation and lack thereof, the large cap internet ETF had a death cross this week:
Bueller?
And yet this overall decline has seen no sign of fear or capitulation.
The rotation to recession accelerated during November. Out of growth and momentum into laundry detergent. Just remember, this can't be due to recession, because everyone knows the 'Conomy is doing fantastic.
"This is yet another indication of high risk aversion"
"It's the feel-good time of the year"
What S&P futures traders, oblivious to everything else on the planet, SHOULD be asking themselves is how long can cereal and diaper stocks keep "leading". Considering there is ZERO growth in those markets.
EM Currencies have been rallying for three months straight, preventing Emerging Markets from final imploding.
Something tells me that is going to end. Badly.
The world awaits
