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Post-Payrolls Reaction: Stocks, Bonds, Commodities Drop, Dollar Pops, As "Good News Is Bad News"
When the better-than expected headline data hit, stocks briefly questioned its reality then plunged. Bond yields initially tumbled (before the number had hit newswires) but once it did, they soared back higher (now up 6-8bps on the day). Crude plunged, bounced, and re-plunged as most commodities are notably lower amid the surge in the US Dollar. Good news, it appears is really bad news as a boxed-in Fed will be forced to raise rates.
Stocks initially rallied as algos took out yesterday's high stops, then tumbled...
As all the major indices are notably weaker post-payrolls...
Treasury yields dropped then popped...
As The Dollar surged...
And Crude plunged...
As all commodities are n otably weaker post payrolls...
Good news is really bad news!!
Charts: Bloomberg
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drop?
There is going to be a rip your face off reversal coming in a few things very soon. Particularly the EUR/USD and the USD/YEN. Growing correlation between stocks and bonds are of BIG concern
That's why I've wrapped extra duct tape around my head to hold my face on
It's a real bitch having to drink scotch through a straw however.
BTW... Watch for S&P breaking below 2070.
The people who are going to get their face ripped off are those bidding up the dollar in anticipation of a rate hike. It's going to be funny watching them get creamed.
There is another possibility that I have suggested a very long time. A credit collapse, which most associate with higher interest rates, but the higher interest rates are a reaction, a symptom of what is really going on. And what is that? A scramble for dollars to service debts.
For us serfs, that scramble for dollars will be to survive and pay for necessities. For the wealthier, it will be a scramble to keep their charade going. And it would occur with or without higher interest rates. The higher interest rates will come after the fact as the realization that the game is over and the music is about to stop.
It's all about deflation. Dollars become harder to get even with all the massive printing that the hyperinflationist have been screaming about. All those printed dollars are overwhelmed by the higher amounts of debts. In other words, all that money disappears instead of circulating through the economy creating traditional inflation.
Isn't it interesting that the only data surprising to the upside are those data which are entirely within the control of Government?
wow, I'm 1st to comment. where did everyone go? busy buying gold here?
Wow, this sucks.
wow, I'm 1st to comment. where did everyone go? busy buying gold here?
Nobody knew anything in advance. Gold is always hammered on NFP day - it's a tradition. The actual number could have been anywhere between 1 and 1,000,000 and it would still have gotten whacked.
WAIT for the correction next month, what was that you said? 200k??
No big deal, I'm sure in a half hour the initial knee jerk worry over raising rates will fade and Stawks can get back to marching to new ATH every day.
Gold is not a commodity.
Everything is a commodity including you and me.
"Help! We've only got 4 more months of financial LSD!!!!!!!!!!!"
correction: we have 4 months to get stocks down about 20-30%, so the Fed can reverse course and start printing moar. afterall, spx is the economy.
Absent a black swan or ww3 to blame on a crash, the Ponzi Munchkin will NEVER raise rates.
Maybe that's why the Fed "requested" a good unemployment number. They have to raise rates to keep some credibility, but they are trying to lay the ground work so that people don't panic. It won't work. They HAVE to raise rates and they CAN'T raise rates. End of the line.
It's like watching a train wreck in slow motion.
The Feds have lost all credibility with anyone who is watching this debacle unfold. They are so desparate to convey a feeling of normalcy in the markets, when nothing could be further from the truth. The data are all lies and this idea of a .25% rate hike being anything other than a complete fucking joke is something to behold. If things are normal then let's see a rate hike of 2 or 3%. We are teetering on the edge of an economic collapse and these fucktards are lying bastards trying to appear like they are in control. Something is coming down the pike that will divert attention away from these assholes so that the retarded public will once again be convinced that the fed is necessary. Count on it.
Well let's see how fast we pay down our blooming national debt with rising interest rates! Look out below!
Well let's see how fast we pay down our blooming national debt with rising interest rates! Look out below!
I absolutely love this!
All cash since last Feb. Cash is kind bitchez!
MOAR!
I think its time for the Fed and it's banks to go back to mark to market on their assets. Let's get back to reality so we can get the country back in good standing.