And Then, Things Really Started To Go Wrong…

And Then, Things Really Started To Go Wrong…

And so, things took a wholly unfortunate turn into month-end. Mercifully, Treasurys pared gains following a poor 7-year auction, and that gave equities a bit of respite, but it was still a tough day on Wall Street. It's now abundantly clear that stocks have had more than enough of the bond rally. In the simplest possible terms, the trade war and concurrent growth jitters have overwhelmed risk appetite. Read more: The ‘Marking To Misery’ Trade Has Accelerated US stocks are headed for what
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6 thoughts on “And Then, Things Really Started To Go Wrong…

  1. EDZ (3x inverse EM ETF) off over 2% today. Strange. I take it as end of month profit taking as it is up 30% in the past 3 weeks. The last 24+ hours has told us very wicked things this way come. I see an EM collapse in the next 2-3 weeks.

    1. Also, I fully expect the China “Apple announcement” the week prior to the G20, which also happens to line up with the start of the buyback window. I would not be shocked for Apple to go below $100 and S&P to 2000. An overreaction? Of course, but that’s what markets do. It will be a great buying opportunity.

  2. Where as a lot of us have anticipated a move on Apple I can’t get my hands around what mechanism would be the simplest way for China to do this and minimize unintended consequences to themselves…. Any ideas on this anyone???

  3. China could impose privacy-breaching requirements that would force Apple to withdraw, or organize a boycott. Either would damage Apple while keeping the Foxconn factories running albeit at a slower pace.

  4. The sector action was interesting with defensives like staples, utilities, reits acting worst. Seemed to coincide intraday with the increase in treasury yields. Which would make sense as defensives tend to be rate sensitive.

    We’re not yet seeing the phase where the strongest stocks catch down with the weakest, on an intra-sector look. Nor do volumes or VIX or style action suggest a near bottom.

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