Today’s market…
S&P and Dow both broke below their 200DMAs but the intraday chart of cash indices today shows the massive rebound off the 200DMA (that began as Europe closed)..
And took stocks back to unchanged… and by the miracle of machines and VIX crushing algos, The Dow closed green!!!
For context, Dow futures tumbled 400 points at the lows, before ripping back almost 500 points to the highs and into the green
Small Caps briefly went red YTD, but that also seemed to spark a bounce…
Gold and The Long Bond remain bid since yesterday’s FOMC Statement, the dollar is lower along with stocks…
Despite the best earnings season in 24 years, The Dow is suffering the worst start to a year since 2009…
And, at the lows today, The S&P is having its worst yearly start since 2002…
As Market Watch reports, according to Thomson Reuters I/B/E/S, of the 343 companies, or about 70%, of S&P 500 members that have reported earnings to date, 79.9% have reported earnings per share that were above analysts’ expectations, putting the season on track for the highest earnings beat rate on record, going back to 1994.
Musk was massacred….
Banks were battered then panic-bid…
Before we leave stock-land, this made us smile… Hong Kong and Chinese stocks were slammed early on as HKMA chief warned the public to prepare for volatility and the currency tumbled back to the lower end of the peg BUT just as the trade talks began, Chinese stocks – particularly the tech stocks under most scrutiny – rocketed higher…“cough National Team cough”
Treasury yields extended their drop from yesterday’s Fed statement…the whole curve is now lower on the week…
With 10Y holding well below 3.00%…
And the yield curve flattening once again… (2s10s erased all the steepening post-FOMC)
The Dollar drifted lower erasing the FOMC Spike, back below Tuesday’s close…
But the Argentine Peso plunged (the worst performing currency in the world today despite a 300bps hike)…
While the peso plunged, bitcoin and his brothers bounced…
Commodities ended the day higher but crude was the big v-shaped recovery play intraday…
Finally – it’s official, there is no hope! For the first time since Trump’s election, ‘soft’ survey data has no implicit hope-premium in it over real ‘hard’ data…
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