Embrace The Slowdown

If there were questions as to whether we're living in a "bad news is good news" macro regime, Tuesday's price action helped answer them. With all the usual caveats about thin August markets (this week particularly) and the increasingly pervasive influence of option hedging dynamics and systematic flows, it's safe to say US equities (and rates) were listening closely to the first of this week's deluge of key macro data out of the world's largest economy. The downside JOLTS surprise and a big dr