Trade-War Buying-Panic Stalls As US Yield Curve Tumbles To Fresh 11 Year Lows

Dow up 700 points... 30Y Yields unchanged...

 

Do you want to play this game?

China managed to extend gains after Monday's best day in years...

 

But Italian banks suffered as Salvano used the b-word (Breakup)...

 

And US Stocks were more mixed than they have been in the last few days...Small Caps adn Trannies were underperformers, Nasdaq unch (after making an record high intraday) and The Dow best...

 

But the trade war has been a buying extravaganza...

 

S&P algos wanted 2800 desperately...

 

The Dow has retraced exactly 50% of its February drop...

 

It looks like the short squeeze is over...

 

Small Caps underperformed Big Caps again today...

 

Treasury yields ended the day higher but notably 30Y ended barely higher as the short-end underperformed...

 

The yield curve tumbled once again...

 

To a fresh low since August 2007... (10s30s now at single-digits)

 

But the swap curve is now officially inverted...

 

And the eurodollar curve has inverted...

 

After a brief but modest bounce in the dollar, it resumed its down trend today, ending at the lows of the day...

 

EM FX surged today back to 4-week highs...

 

With Argentina's peso surging...

 

Cryptos were ugly...

 

Commodities were mostly unchanged but copper resumed its downtrend...

 

Copper closed back near 12 month lows...

 

And finally, while soft, hope-filled survey data bounces, hard, real economic data remains flat from the election...

 

Comments

D.r. Funk Tue, 07/10/2018 - 16:02 Permalink

r u n n i n g - o u t - o f - c o n s e c u t i v e - f o r c e d-s u r g e s, m a n i p u l a t o r s -

So glaringly detectable a preordained multiday run was enacted
As stated the last couple,
As can be seen obtains affirmation Pretty Easily as it's extended
 

Chaotix Tue, 07/10/2018 - 16:13 Permalink

The tyrants that have owned the shipping industry are shitting themselves, hence the big ruckus about the trade war. The bankers involved in heavy logistics are shitting themselves, because loans. Tens of thousands of farmers in the USA have been paid NOT to farm, because 'free trade'. The remainder of farmers are forced to grow Monsanto products to eek out a profit. How do we fix it?

> Break up the logistics giants

> Convert US farmer subsidies into startups to grow our own crops again

> Outlaw the agro tyrants reign on farming

> Ban Roundup and its' derivitives

> Restructure the Ag laws, EPA, and do away with the agro lobbyists

> Fire up the steel mills in PA to reduce the junk steel we buy from other countries

> Ban dual citizenship in any government operation, including lobbyists

> Multinational corporations should be forced to pay taxes regardless of the HQ location. 

> Offshore banks must be nationalized to keep financial laws in place, without the loopholes

 

The list goes on, but its' a start

Kaiser Sousa Tue, 07/10/2018 - 16:14 Permalink

same tired completely obvious manipulative "trading" pattern...

remember when i use to tell ya'll...

up on no positive macro economic data or news WHATSOFUCKINGEVER...

up on the close in EuroPeon...

and finally the sideways shuffle all the way until close....

not ever worth watchin anymore...

i just keep buyin Physical Gold & Silver...

DEATH TO THE MONEYCHANGERS.

D.r. Funk Kaiser Sousa Tue, 07/10/2018 - 17:44 Permalink

An intent of concentrated-multiday anomalous surging has clearly been to dispose of the opposition/bears/shorts or get a resulting squeeze or both.

In the context of 3 or 4 increasingly hostile or failing geopolitical headlines it kinda reveals(that assertion) i.e. design i.e. spiking into the next drop.

It's an illusion mirage perpetuation but they're playing games with it and there is endgame or breaking pt schemata

In reply to by Kaiser Sousa

khnum Tue, 07/10/2018 - 16:14 Permalink

Reading Alice in Wonderland stoned makes more sense than these 'markets' forget fundamentals were down to perception things are only worth what the hidden hand is prepared to pay and if that hand gets pulled.....

Consuelo Tue, 07/10/2018 - 16:37 Permalink

'Fundamentals' is when supply chain disruption occurs where food stuffs and fuel don't make it to their destinations for lack of credit - or trust, both.    That will prove a chart you can believe in ---