The last week in stocks (and apple and Twitter) in 19 seconds…
Strength in China on new short-selling-curbs provided very littlc comfort for US investors. Early strength quickly faded as Dennis Lockhart peed in the Kool-Aid…
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On the day…only Trannies closed green…
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From Lockhart's comments, S&P and Dow were weak…
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And since Friday… Dow and Smal lCaps underperform
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The machines were in charge as AAPL selling pressure demanded index support to sustain institutional sells…
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With AAPL getting clubbed…
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VIX was as gappy as a hillbilly's teeth…
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Treasury yields all rose notably after Lockhart jawboned…
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Which drove the curve to its flattest in almost 4 months…and flattening at the fastest pace this year
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The Dollar Index surged after Lockhart's comments as money fled EUR and CHF…
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Dollar strength sparked more commodity weakness…
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Fed credibility remains near zero as the long-bond tracks reality and short-end tracks Fed promises… As one witty chap said “Data Dependent, my arse!!”
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Charts: Bloomberg
Bonus Chart: Just a little reminder – The Fed f##ked up before…“The Fed exit strategy completely failed as the money supply immediately contracted; Fed tightening in H1'37 was followed in H2'37 by a severe recession and a 49% collapse in the Dow Jones.”
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