The US Stock Market Just Did Something It Has Never Done Before

It has now been 242 days since the US equity market dipped by 3% or more... That has never, ever, happened before...

Rick Astley said it best..."never gonna let you down... or desert you"

Ironic then that stocks had their worst day in 6 weeks.

GE schizophrenia shows the utter farce that this so-called 'market' has become...

 

Nasdaq gave up all Friday's Budget-Resolution, tax-reform-hope gains...

 

NOTE they tried to ramp stocks in the last 20 mins but that failed - this is not something we have seen recently...NOT OFF THE LOWS...

 

S&P VIX jumped by the most since Sept 5th - back above its 50- and 100-DMA...

 

Risk and price remain decoupled...

 

It ain't over yet...

 

FANG Stocks dropped near 3-week lows...

 

Financials are starting to catch down to the yield curve's reality...

 

Treasury yields dipped today...

 

But 10Y tested up towards 2.40% before fading back...

 

The Dollar Index extended Friday's gains, closing at its highest since July 14th (even though it faded into the close)...

 

Cable was strongest after May's speech but Yen surged in the last hour...

 

Bitcoin tumbled from new record highs early on following Saudi Prince comments but was bid into the close of the US equity market...

 

Despite dollar strength, commodities were higher, led by copper...

 

Gold futures spiked around 12ET on the back of a $2.4 billion notional volume surge... back above its 100DMA...

 

WTF Bonus Chart: South Korean stocks are at record highs (why not!!) but South Korean sovereign credit risk is at its worst in 20 months...

Comments

HRClinton jamesmmu Mon, 10/23/2017 - 17:18 Permalink

Ah, I remember Rick and his hit very well.  The irony is, that Rick dumped his GF shortly after the song became a hit.LOL...  Perfect song to play, just before you dump someone.  If they hear the Rick Astley tune, they know "it's over".  Use the "It's not you, it's me" line for smoother exit.Good tune for a 1-hit wonder though.

In reply to by jamesmmu

Hammer823 Mon, 10/23/2017 - 16:05 Permalink

Small losses to keep up apperances.  Fact is, since 2014, well more than half the components of the DJIA have DECREASED in total revenue.  That's right.  The majority of DJIA companies have SHRUNK over the last 4 years.  Yet the index has gained 7,000 points or almost 50% since that time.  It's easy to see that stock indexes are rigged to go up, regardless of company performance, profits, or fundamentals.  

junction Hammer823 Mon, 10/23/2017 - 16:25 Permalink

Time Warner, Comcast and Viacom have propped up their stock prices with share buybacks.  AFAIK, these three media companies have not turned a real profit in four years. These companies, and other companies, are following a strategy similar casino gamblers who double down their bets at a table game with a 50% chance of winning, like betting on red at a roulette wheel until the ball drops into a red number slot.  The Martingale strategy.  Only time will tell whether this buyback strategy will work out or whether the company craters under the weight of its debts. 

In reply to by Hammer823

RealistDuJour Iconoclast421 Mon, 10/23/2017 - 16:15 Permalink

I love when charts overlay 1987... yet when you look closer, what you see with 1929/87 vs this chart is that the volatility that was already apparent in the previous 2 events doesn't match what they're overlaying.  "Look, things generally went up then they really went down".  Thanks Simple Jack, you can put a square block in a square hole.  Did you know that you can shove a golfball through that hole too, so it must be a square block!

In reply to by Iconoclast421

jmack Mon, 10/23/2017 - 16:10 Permalink

You know.  Venezuela could bypass the petrodollar by using thier oil to create electricity and using that electricity to mine btc.   Just saying.     Petro dollar aint lookin too healthy.

rf80412 jmack Mon, 10/23/2017 - 16:22 Permalink

Depends how well their low viscosity, high sulfur oil can be burned straight from the ground.That or go to the Chinese to get money for investments in refinery infrastructure, since the refineries designed to process Venezuelan oil are all in the US.  Tell them they can have every barrel produced by the refineries they pay to build.

In reply to by jmack