'Carve-Outs' Rescue Stocks From Cohn Carnage

Cohn's out... but all is well...

 

Overnight saw stocks plunge on Gary Cohn resignation headlines, stagger some more on weak macro data, bounce on "good" news that Navarro was not 'on the list', only to be rescued by Sarah Sanders telling reporters that 'carve-outs' were possible from Trump's tariffs... But as soon as The Dow filled its gap and S&P inched green, sellers re-appeared...

 

Dow managed to fill its gap before tumbling into the close...

 

Bank stocks were initially disappointed by Cohn's departure but soon got over it (though Goldman underperformed)...

 

VIX was pushed lower again as all major US equity vols were systemically sold after Europe closed...

 

Treasury yields ended marginally lower on the day but traded in a narrow range once again...

 

And overall, 10Y yields managed to almost get back to unch this afternoon...

 

Notably Breakevens lagged yields today but snapped higher (along with stocks) after Sander's "carve out" comment...

 

The Dollar Index limped back to unchanged after some modest gains early on...

 

 

At around 11ET, cryptos carnaged lower today...

with Bitcoin battered back below $10k on massive volume...

 

Commodities were all lower today (despite the dollar ending unch) and we note the jump in PMs on the Cohn headlines soon after the close...

 

Interestingly, the dollar and gold fell together in the afternoon as stocks were ramped...

 

WTI/RBOB sank on inventory and production data...

 

Gold continues to lead post-Trump-Tariff-Tantrum but stocks were ramping hard today...

Comments

Hammer823 Wed, 03/07/2018 - 16:01 Permalink

Textbook down day in our artificial market.  Multiple staged reversals.  Losses eliminated completely.

There’s a reason the phrase” BTD” exists, and it’s days like today.

US indexes reverse morning losses over 75% of the time within 24 hrs.  This is a fact.

Simply buy the index in the morning when it falls and sell in the afternoon/following day.

You never have to actually own anything.  Just rent it for 24 hrs.

The powers that be are desperate to protect Government pensions, 401K’s 529’s, and the $10 trillion dollar wealth effect the FRB has created.  Our economy simply can’t afford a significant drop in stock prices.

Trade this pattern.  I guarantee it will make you money.  US indexes are rigged to go up.

This isn’t hubris or sensationalism.  It’s simply reality.

D.r. Funk Hammer823 Wed, 03/07/2018 - 16:06 Permalink

This is like a dystopian spoof monologue in a hunger games-like movie

How the f did we get so much propaganda in this venue

Just because there is direct programming on the indexes as some of us said 4.5+ years ago

Doesn't mean, It's a fairytale land, And can go up forever, Or will just go up forever!, Holy, F!

 

In reply to by Hammer823

gatorengineer leefool Wed, 03/07/2018 - 16:44 Permalink

You still have to have stops, and I think he implied trading rules apply.  If a strategy in the market works 60 percent of the time, and you are DILLIGENT in following your rules, you will win.  When you break your rules than you are fucked.  

Who wants to short this hog, even though everyone knows its dead?

In reply to by leefool

DillyDilly Wed, 03/07/2018 - 16:04 Permalink

Wouldn't surprise me at all to find out (in a few months, where the 'forensics' of it all never made it to the front pages of MSM)...

 

That THE SQUID engineered this day of carnage like a 6 month old baby throwing a hissy fit because one of their 'boys' got his pasty ass crack hit by the screen door.

 

Fuck them!

Snaffew Wed, 03/07/2018 - 16:05 Permalink

one can't argue with that logic...until that strategy doesn't work any more...then it's the way to go.  Don't forget that people also talked like that about selling volatility until that trade flat out broke.

Traderone Wed, 03/07/2018 - 16:07 Permalink

Once the first hour low held (ES) then sellers knew they were toast. Shorts started to cover (by buying), new longs smelt blood and joined in, it then became a frenzy. If you look at yesterdays PA you will see that the first hour low gave way and longs knew they were fucked. That's how it goes.

Ross123 Wed, 03/07/2018 - 16:08 Permalink

 Why was everyone surprised about Cohn leaving?

It was on the cards from the time President Trump pulled out of the Paris Agreement. Cohn was against that and made some stupid comments later about " The President is coming around on the climate issues". So it only became a matter of time--he just waited until the tax issues were sorted.

Erwin643 Thu, 03/08/2018 - 00:40 Permalink

Please, stop with this Cohn bullshit!!!!

I never even heard of the guy, alright!!! He's NOBODY! How can he affect the global markets?

We're in a technical trading range. All the long and short-term moving averages are converging here. That's what's going on.