Ahead of tonight’s results, this seemed appropriate…
Another afternoon-session buying spree saved China stocks overnight…
After going nowhere yesterday, European stocks dropped and popped today to end modestly negative on the week…
US Futures show that while yesterday’s cash open was panic-selling in Nasdaq, today was panic-buying… weakness towards the end of the day was quickly assailed with a manic-bid into the uncertainty of tonight’s results…
On the day, early gains evaporated into the last hour.., then the ubiquitous FOMO buying panic hit (despite a huge MOC sell order)…
Look at those charts – what a farce!!
Volume was abysmal – 60% below average!
But that didn’t stop the machines swinging from a massive negative TICK to a huge positive one…
The Dow managed to limp back above its 100DMA…
FANG stocks rolled over after a strong open…
Financials continued to outperform the market into the midterms…
Despite…
just a few hours until she is in charge of the banks pic.twitter.com/jezB3TZL1m
— zerohedge (@zerohedge) November 6, 2018
Treasury yields were higher across the curve (but the long-end outperformed – trading in an extremely narrow range all day)…
Crushing the yield curve…
Of significant note in bond-land is the collapse in short-dated breakevens…
It’s another signal from the weakening breakeven market, as well as other markets, that investors are concerned the Federal Reserve is too tight. This week’s meeting is a chance for the central bank to mention breakevens and changing inflation expectations. Will they note that this year’s gains have now disappeared for five-year breakevens? After all, in their last statement, they had noted five-year breakevens had “ticked up” between their August and September meetings.
Bloomberg’s Sebastian Boyd notes that this deflationary impulse seems to be all about oil…
Seems he is right (a linear regression of the 5y5y breakeven rate against the generic 6th WTI contract, gives an r-squared of 0.826 over the past five years).
The Dollar leaked lower on the day…
Offshore Yuan went nowhere today…
Cryptos continue to rise on the week with Ripple surging along with Bitcoin Cash (Bitcoin vol is now at a record low)…
Copper continued its slide and despite dollar weakness, the entire commodity space fell on the day…
WTI Crude crashed to a $61 handle and 7-month lows, down 20% from its October highs and officially in a bear market…
The Yuan peg to gold continues at around 8500…
We give the last word to Gluskin-Sheff’s David Rosenberg who has an ominous historical reminder…
Word to the wise. We have endured two 10% corrections in the same year for all three major averages. This has only happened in 1973, 1974, 1987, 2000, 2001, 2002 and 2008. All but 1987 signalled recession, but that wasn’t a pretty picture either.
— David Rosenberg (@EconguyRosie) November 6, 2018
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