‘Sentiment Is Only Getting Worse’: Bond Selloff, Liquidity Concerns Hit China As Stocks Dive
“No one should bottom fish before a clear floor appears.”
“No one should bottom fish before a clear floor appears.”
“If we’re too optimistic when things go smoothly, tensions build up, which could lead to a sharp correction, what we call a Minsky Moment.”
“Let me in.”
“…as for this morning’ ‘it’s quiet, too quiet’ is the only quote that comes to mind.”
Again, it’s the spinning plates.Â
And the punchline: if that plays out, there’s only one thing to do…
Come one, come all.
“When asked their worst trades this year, they mostly cited buying volatility, credit protection, or equity puts.”
And now, back to your regularly scheduled programming…
Best of luck in Q4 and here’s hoping there’s a Q1 2018.
15 yards…
“There’s an oft-quoted cliche that the definition of insanity is trying the same thing over and over expecting a different result.”
“One school of thought is that they have played their cards exceptionally well this year in the FX market.”
“Either way, you gotta be super smart to run a country and sell vol. buddy, okay? It’s not easy.”
“It’s not crazy”…
The point: Beijing is already predisposed to intervening in markets to offset any turmoil a sovereign downgrade might catalyze and you can bet that predisposition is stronger than ever ahead of the Party Congress.
Well, the timing leaves something to be desired.Â
“The de-dollarization of the financial system will not be an overnight event.”
This time last week, everyone thought we’d all seen our last Friday.
That’s cause for concern. Given that the country is the engine of global growth and trade, you don’t want to see the brakes slammed on. That said…
There have been all sorts of labored attempts to explain how this isn’t all Trump’s fault and because nothing is ever entirely attributable to a single factor, those efforts are not totally in vain. That said….
You’d probably be wise to do the same.
Now stay tuned to find out if Kim bought some VXX today on the cheap so he can fire off an ICBM this evening and make a few million to put towards his next H-bomb.
Ok, get ready.
For now, the fiscal-chaos-can has been kicked, Harvey is behind us, and North Korea’s latest nuclear test has come and gone.
But dead ahead is Irma’s landfall in Florida, North Korea’s “founding day” (which by most accounts will be “celebrated” with an ICBM launch), and of course, more gridlock in D.C. We are, figuratively and literally, in the eye of the storm on Friday.
“None more so than the Chinese Yuan. Although most hedgies were all betting on a massive decline, the Yuan has been strengthening like Lance Armstrong after visiting his bio-chemist.”
Dear lord: the pressure on the dollar is unrelenting.
It looks like no one wants to be the idiot that’s long USD headed into a weekend that could see a catastrophic hurricane strike on Florida and another ICBM launch for North Korea.Â
So as Bloomberg notes, markets were “slightly disjointed overnight with various factors driving individual assets,” but you do want to keep an eye on the dollar here because it looks like the Cohn news combined with Stanley Fischer’s resignation is weighing on the greenback.
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