Trade-Deal Doubts, Peak ‘Put-Puke’, & Extreme Greed Spark Stock Stumble

Trade-Deal Doubts, Peak ‘Put-Puke’, & Extreme Greed Spark Stock Stumble

If “greed” is good…

….then “Extreme Greed” is better…

Source: CNN

And when you’re ‘extremely” greedy, you don’t need hedges… hence the “put-puke” – which saw a very modest reversal today after days of collapse…

Source: Bloomberg

And, thanks to Trump’s comments and China Global Times’ “lies” response, the market’s pricing of a US-China trade deal slipped…

Source: Bloomberg

Which sent US equity markets red after hope-filled overnight markets expected something great from Trump’s speech, (but Larry Kudlow came on CNBC around 1500ET and jawboned stocks and then a well-timed headline on tax cuts lifted stocks a little more)…

Source: Bloomberg

Big reversal in cyclical stocks today as hope for Trump’s trade speech faded…

Source: Bloomberg

Shorts were squeezed at the open once again BUT this time it was different as “most shorted” stocks were slammed lower…

Source: Bloomberg

The recent series of fresh record highs for U.S. stocks is not being matched by a gauge of broader market strength, suggesting the gains should be treated with caution.

As Bloomberg reports, The McClellan Oscillator, a measure of breadth momentum, is trading below zero — an “unusually weak reading” with the S&P 500 Index at all-time highs, according to Sundial Capital Research Inc. founder Jason Goepfert. The divergence is a modest near-term negative for stocks, having preceded poor short-term returns in the past, he wrote in a note Monday.

And the SMART Money flow remains unimpressed…

Source: Bloomberg

Having reopened after yesterday’s Veterans Day closure, bonds were bid today…

Source: Bloomberg

A massive 10-part $30 bn debt issue from Abbvie (to fund its purchase of Allergan) perhaps explains the surge in yields late last week as managers enacted rate-locks…

Source: Bloomberg

Meanwhile, elsewhere in bond-land, it appears the idea of Legere taking over as CEO has done nothing for WeWork as its bonds collapse to new record lows (yield now at 14.5%)…

Source: Bloomberg

And just in case you wondered, the cost of hedging against a Chinese currency devaluation or sovereign debt crisis is the lowest sine 2008…

Source: Bloomberg

The dollar rallied for the 6th day of the last 7…

Source: Bloomberg

Offshore Yuan slipped lower today as trade deal odds fell…

Source: Bloomberg

The Chilean Peso plummeted to a record low, over 800/USD for the first time…

Source: Bloomberg

Cryptos were somewhat volatile today but ended almost unch…

Source: Bloomberg

Commodities were divergent today with crude and copper sliding as PMs rallied late on…

Source: Bloomberg

Gold was hit multiple times but rebounded each time and ended marginally higher…

 

Finally it seems the upside momo from trade headlines has been used up as markets seemed more comfortable selling rips today on any hesitation…

And very quietly, the money is moving away from Elizabeth Warren…

Source: Bloomberg

And while the odds are high that the House impeaches, they are just as high that the Senate won’t and Trump will serve out his first term…

Source: Bloomberg


Tyler Durden

Tue, 11/12/2019 – 16:00

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Author: Tyler Durden

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