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Stocks Suffer Longest Losing Streak Since Feb As Breadth Plummets

Tyler Durden's Photo
by Tyler Durden
Friday, Sep 10, 2021 - 04:01 PM

The S&P just suffered its worst week since mid-June...Small Caps were the biggest losers this week. Nasdaq was the least bad horse in the glue factory...

...threatening to make September the first loss-making month since January...

Source: Bloomberg

...which would fit with September's seasonally challenging performance...

Every dip that was bought this week was met with more selling... that is NOT what the doctor ordered!! Everything looked great overnight but the cash equity open saw the selling begin and barely stop and the close was really ugly...

The S&P is down 5 days in a row, the longest losing streak since February, as market breadth continues to collapse...

Source: Bloomberg

The Dow is well below its 50DMA...

Small Caps fell back to the thin channel between the 50- and 100-DMA...

AAPL suffered after the Epic court decision...

Consumer Discretionary outperformed on the week while Healthcare lagged...

Source: Bloomberg

Defensive stocks underperformed this week but cyclicals were also down...

Source: Bloomberg

VIX jumped back above 20...

30Y Yields ended the week unchanged (after today's selloff) with the belly of the curve slightly higher in yield on the shortened week...

Source: Bloomberg

30Y Yields basically ran the stops from last Friday's wild payrolls swing...

Source: Bloomberg

The dollar ended the week higher...

Source: Bloomberg

Offshore Yuan ended the week practically unchanged after stalling today following Biden trade probe headlines...

Source: Bloomberg

It was an ugly week for cryptos as they puked on Tuesday, bounced, then rolled back over...

Source: Bloomberg

Uranium stocks surged again this week...

Source: Bloomberg

Commodities were mixed today with copper surging after supportive China comments and silver and gold lagging as the dollar gained...

Source: Bloomberg

Finally, here is the death cross of modern monetary policy... it's not the economy stupid... it's the market that really matters...

Source: Bloomberg

Put another... It's a Mad World...

Additionally, SocGen's proprietary Multi-Asset Risk Indicator (SG MARI) - based on investor positioning in futures and options markets - is currently hovering just above deep risk-off territory despite incessantly rising markets.

The indicator has seldom been at such a low level. As noted by Soc Gen:

“It has indicated ugly and even terrible things in the past (tech bubble, credit crisis, taper tantrum) when declining further. Conversely, whenever the indicator has bounced back from current levels, it has typically heralded the start of a more positive tone, which is good for equity and commodities but not for rates.”

And bear in mind September's historical seasonality...

Just before the bell, Goldman put out a note:

Bottom line, I expect market weakness to occur in late September and potentially pre-positioning for weakness next week. I think the dip is ultimately shallow and bought into a strong Q4.

Trade accordingly.

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