Tech Wreck Erases 'Ross Rout' Rebound As Government Shutdown Fears Grow

The Top?

 

Bonds & bullion remain bid post the Ross Rout as Nasdaq sinks...

 

And while stocks were exuberant overnight,  only Trannies remain positive from the start of the Ross Rout... with Nasdaq getting monkey-hammered... (biggest reversal in the S&P 500 since Feb 2016)

 

Equity momentum is getting smacked as investors rotate into Value...

 

Today's 4% divergence between Momo and Value is the biggest since the election...

 

Did President Trump jinx it?

 

11 of the last 12 days have seen shorts squeezed (but note today's opening squeze rolled over notably)...

 

Big day for banks again...

 

Amid Freedom Caucus emergency meetings and 'Chuck-and-Nancy' meeting Trump, anxiety about the government shutdown deadline is starting to be seen in the T-Bill market...

 

But the rotation from low- to high-taxation companies is accelerating wildly...

 

Which slammed tech stocks everywhere.

 

The S&P has outperformed Nasdaq for six straight days - this is the biggest divergence between their performance since May 2009...

 

Treasury yields ended higher on the day with notable underperformance once again at the front-end...

 

Flattening the yield curve once again to new 10 year cycle lows...

 

The Dollar Index trod water today after knee-jerking higher at the open last night...

 

Commodities were lower aross the baord with Crude leading the way lower...

 

And as stocks sank today, Bitcoin was bid back towards record highs...

 

Comments

dasein211 Arnold Mon, 12/04/2017 - 16:22 Permalink

So does Trump realize that taking credit for the stock market works both ways? Is he seriously this fucking stupid? And huge tax cuts mean the government spends less and THEY ARE THE BIGGEST SPENDER. I’m all for less spending but it comes with the cost of economic collapse and the only spending that matters anymore is govt spending. The party in charge WILL get the blame. There’s a point where blaming Obama and Hillary and liberals won’t work anymore. I’d say we are there after 2 years. Why do right wingers believe that cutting government spending will win them seats? Set your political morals aside. It’s economic hot potato and republicans are holding it right now. No way tax cuts increase growth right now. Spending will stay the same which will stagnate growth and after no increase in spending will lead to an economic downturn. Rich people don’t spend money. Unless it’s government money being spent at their company store.

In reply to by Arnold

D.r. Funk dasein211 Mon, 12/04/2017 - 16:40 Permalink

Yeah this guy is 'almost' one hundred percent correctI think trump does have an idea of fake or manip'd data pre 16 regardless what he saysHe is pretty fucking stupid to tout the overbloated hyperbulging index levels though dotdotdot The assigned blame narrative began on the extreme index programming pump following the unexpected victory/loss, which I identified and called out almost Immediately as fishy, in what's proven since then to be a several layer addition to a beyond obvious mountainous equity bubble

In reply to by dasein211

Urban Roman Mon, 12/04/2017 - 16:22 Permalink

Send in the clowns.By the way, what was the point of that video? I ran the whole thing expecting that Lambo Anus to drive into the swimming pool at some point, and it never did. I had the sound off, did they say something stupid?

D.r. Funk Mon, 12/04/2017 - 16:08 Permalink

Closer to the end of this additional forged leg that had its start as a piggyback following hurricane irma. The opaquely-overaggressive ...programmed... multiweek run pre-scribedwould be the word You're not getting 25 I will not have to see 25 dow I - Will - BEAT - You  

NDXTrader Mon, 12/04/2017 - 16:12 Permalink

No agreement doesn't mean the government is going to shutdown. How many times have we been through this one? The "emergency measures" kick in, which let's be honest probably really never have an end date

adolphz Mon, 12/04/2017 - 16:20 Permalink

Guberment. Tek  rek Shepwave time date for indexes to see new highs except for nazd worked perfectly. Great day to trade  at sell at open today  wating  next instructions 

cheech_wizard Mon, 12/04/2017 - 16:49 Permalink

Breaking MAGA!https://www.cnbc.com/2017/12/04/supreme-court-allows-president-trumps-t… Supreme Court is allowing the Trump administration to fully enforce a ban on travel to the United States by residents of six mostly Muslim countries.The justices, with two dissenting votes, said Monday that the policy can take full effect even as legal challenges against it make their way through the courts. The action suggests the high court could uphold the latest version of the ban that Trump announced in September.The ban applies to travelers from Chad, Iran, Libya, Somalia, Syria and Yemen. Lower courts had said people from those nations with a claim of a "bona fide" relationship with someone in the United States could not be kept out of the country. Grandparents, cousins and other relatives were among those courts said could not be excluded.Justices Ruth Bader Ginsburg and Sonia Sotomayor would have left the lower court orders in place.Standard Disclaimer: Damn those laws that were already deemed constitutional that were already on the books. 

Kagemusho Mon, 12/04/2017 - 16:57 Permalink

Gub'mint shutdown my ass. I was a Federal worker way back in 1995 when they first tried that, and all that happened was that the Paredo 20% were put in charge of things while the Paredo 80% (the fuckoffs) were given furloughs. I had to make do while my 'partner'  was given a nice little 2 week vacation...not that my partner ever did anything because my partner was one of the protected class; they wouldn't do anything about my partner's poor performance and lousy attitude because she was Black.The only thing that happens with such 'shutdowns' is that the usual worker ants, the ones that keep things going, day in and day out,  just get more stressed while the fuckoffs get another free ride. To quote the 1980's group 'Talking Heads', "Same as it ever was, same as it ever was..."

Barney08 Mon, 12/04/2017 - 17:14 Permalink

No way all the really smart money runners can stay away from the likes of FANG and the ilk. They have zero ideal or patience for value. When you hear about the rotation from growth to value, value is a parking space nothing more.

Give it 2 weeks. All time highs for Bezos and co. The narrative has not changed.

Do you really think a 28 year old MBA can sit on P&G or GIS for a quarter much less 2 weeks. I have zero faith.

Rich Monk Mon, 12/04/2017 - 17:26 Permalink

What does congress do other than spend "our" money, and create more laws that destroy "our" freedoms? The Federal government is just marxism with a different name.