‘Dragon Energy’.

It felt a bit like everyone was in a holding pattern on Wednesday, which isn’t surprising because as noted in “‘Herd’ On The Street: Crowded Trades Get Slaughtered As World’s Most-Followed ‘Strategist’ Proven Right,” nobody understands what’s going on.

The surging dollar recouped what it gave back yesterday to trade higher:

There are some folks who are concerned about the short-end. Peter Tchir, for instance, wants to know why you aren’t more worried about 2Y yields. “The 10-year yield might attract all the attention but higher short-term yields are more problematic, ” he wrote on Wednesday.

And obviously, people are still debating whether 10Y yields above 3% are the end of the world or not. If you think bonds are oversold, well then why aren’t you buying?

People are also getting worried about IG – spreads up more than 20bps since February tights:

Stocks are leaning pretty hard on lines these days – the 200-DMA is (still) like Frederick Douglass: it’s something which “has done a terrific job that is being recognized by more and more people”:

Interesting two days for Boeing:

Boeing First Quarter Core EPS Beats Highest Estimate

ok, now DO NOT say "high-water mark" on call

"DO NOT CONGRATULATE"

— Heisenberg Report (@heisenbergrpt) April 25, 2018

Oil managed to rise despite bearish inventory data, as Macron’s address to Congress continued to suggest there’s no agreement on the future of the Iran deal, just weeks ahead of the critical May 12 deadline:

The lira tried to rally after the CBT delivered a 75bp late liquidity window hike and as I mused first thing this morning, that limp-dicked nod to responsible monetary policy was likely to fall flat because there’s a maniac running the country. Sure enough:

The MSCI Emerging Markets Currency Index fell for a fourth day, while EM equities are under pressure as a stronger dollar and rising U.S. yields weigh:

Finally, for your moment of zen, Kanye and Trump are “very cool, dragon energy” brothers: