For no good reason, equity markets woke up this morning with a "Tuesday" hangover. Perhaps it is the realization that there is no great rotation and bond weakness is a sign of global capital market queasiness (not growth expectations). Perhaps it is a drying up of collateral to cover the over-levered, over-crowded, reach-for-yield trades. Perhaps the whisper of a well-known large hedge fund manager forced to liquidate his $18.7bn portfolio, [6] into a stock market with no capacity to cope with 'negative' liquidity at the margin, are actually true. Or just perhaps it is time for a snap back to reality (the reality of VIX, credit, macro, micro, lumber, and copper perhaps?)
[7]
may be worth keeping an eye on these stocks... SAC's Top 30 Holdings...
[8]
Charts: Bloomberg