Yesterday crude stocks were assaulted and flayed. Today, they’re the sole designation of safety amidst a barrage of sell orders. Who can sort this out on a day to day basis?
The Nasdaq is getting shredded, down nearly 50 and the Dow -100. Once again, losses are most abundant in tech, since that’s where the hot money is and the weakest hands. I don’t want to jump to conclusions and make a big deal out of a minor sell off. After all, it’s normal to sell off after long periods of gains. The fact that we hadn’t sold off and the VIX kept sinking was, in fact, abnormal. In short, the tree of prosperity must be replenished with the blood of the weak, every so often. However, all major sell offs started small, unassuming. What you want to look out for his major distribution amongst hedge fund hotels — large cap winners that have served as vessels of profit for asset managers.
Here is my list.
FB, AAPL, AMZN, NFLX, GOOGL, BABA, JD, TSLA, PYPL, ADBE, REGN, NVDA, AVGO, ORCL, CRM and PCLN.
That is your leadership above. Without them going higher, you local cocaine addicted money manager might have to cut his summering short and get back to work. If you start to see some of those names drop 5% in a single session, then you should panic.
Interestingly, rates are higher today and the yield curve widening. The 2-10 spread is approaching 100bps — very bullish for the banks. I would not be surprised to see people rotate into banks today.
Oh, the fact that crude is higher by 1.7% today is somewhat meaningless, when considering it was off by 4% yesterday. We’re stuck in this $42-48 range and the underlying equities hate it.
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I feel like you definitely called this exact scenario yesterday.
Seriously, If you follow macro, you’re scratching your head today. Rates up across the board, USD getting hammered, Gold flat, Stocks getting rocked. None of your typical correlations are at work here.
Oh gee, that “wasnt” gonna happen at some point: correlations going whacko, from years of surgical Pummeling
Rates rocketing higher in Europe
$NVDA looking good today.
Where do you see the UST curve headed? Pain trade seems steeper given positioning, but with less accomodation, one would think flatter seeing as their is less support for asset prices and therefore deflationary pressures are likely to build……how would you think about trading this?