Stocks Pump'n'Dump As "What China Giveth, China Taketh Away"

'Murica, F**k Yeah...

Despite the holiday-shortened trading day, there was plenty of vol for everyone today...

Equity futures show the chaos best as PBOC Governor Yi rescued the world overnight but US investors used his overnight pump to dump their gains (not helped by China's court ruling against Micron)....

 

In cash equity land, Small Caps remain green on the week...

 

The Dow closed below its 200DMA for the 7th day in a row...

 

Micron was a mess after the headlines...dropping to 2-month lows...

 

But Tesla is worse - down over 14% from its post-production goal highs...

 

Treasury yields tumbled today as stocks reversed around the cash equity open...

 

We are starting to see a pattern intraday in Treasuries - buying overnight, selling during US day...

 

The Dollar erased yesterday's gains as China's intervention rippled through markets but as stocks sold off in the last hour of the short-day, the dollar bounced a little...

 

The biggest news overnight (and into the open) was China's intervention to rescue the Yuan from freefall...

 

But some context is important for this bounce...

China's stocks managed to surge on the intervention but only CHINEXT is back to breakeven on the week...

 

Cryptos pumped and dumped today but ended the day unchanged, still up notably on the week...

 

PMs rallied on the dollar weakness but copper and crude faded...

 

Notably WTI tumbled after reports that the Saudis would increase production as Trump asked...

 

Comments

Solosides Tue, 07/03/2018 - 13:03 Permalink

*Insert generic spam from Investment Watch Blog here*

 

Don't forget to celebrate the 4th in true patriotic fashion by mass murdering as many bankers and politicians as you can.

Quantify Al Huxley Tue, 07/03/2018 - 13:25 Permalink

Dow is only down a little over 1k since this started. I expected far more pain than this. The Chinese markets are down far more.

"The yuan has just suffered their steepest monthly decline on record.

Chinese shares are now in bear territory, down more than 20 per cent since the recent peak in late January. They lost another 6 per cent last week."

In reply to by Al Huxley

IDESofMARCH Tue, 07/03/2018 - 13:41 Permalink

I've been in 69% cash since Feb. 

I'm having a Bravehart Moment.. 

HOLD, Hold, hold I'm patiently waiting for the shit to quit coming out of Trumps Loud Mouth

and hear Bravehart yell, Buy, Buy,Buy.

Al Huxley IDESofMARCH Tue, 07/03/2018 - 13:47 Permalink

I've been beating on the PM miners a lot lately, but I actually think they might be a buy here.  No selling, in spite of the metals getting hammered.  Ratio of miners to metals looks bullish, gold just hit the trendline from 2016 low.  If there's a bounce in the metals prices here the miners are going to pop big time.  Extremely dangerous sector, full of charlatans, morons, bank shills, conmen, etc.  but it's overdue for a big pump.

In reply to by IDESofMARCH

IDESofMARCH Tue, 07/03/2018 - 13:47 Permalink

Saudis pumping more oil is another Trump fake news.

The Saudis and OPEC would have a revolt on their hands and their objective is to keep higher oil price.

Blankfuck Tue, 07/03/2018 - 19:41 Permalink

No worry! The fucktard ponzi artists(the fed preserve) will make it all feel good again colluding with their bankster buddy's fot the market not to drop too far!

Relax, its all printed with smiley pretty peoples on the green puppet bills fresh out of the printers