Update: Who could have seen that coming? No immediate news catalyst for this sudden tumble - or did everyone just realize Kudlow's talk was just that...
As Bloomberg reports, it would be nice to write the market’s convulsions off to liquidity failures, or tariffs, the Federal Reserve or tech valuations.
But for the people living through these swings on trading desks, none of those explanations does the trick -- and that’s what really worries them.
Markets have grown so jittery that moves seem detached from the fundamental or technical analysis that traders use to underpin investment decisions.
“This is why people don’t like geopolitical risk,’’ he said by phone.
“You can’t analyze how the Trump meeting with Xi is going to go, you can’t analyze that we’re going to have a Chinese executive arrested. What you get is not a typical thing that happens.”
For Dennis Debusschere, head of portfolio strategy at Evercore ISI, there’s still far too much risk to wade back into a market this riven by volatility.
“Overall still untradeable in our opinion, until we get more clarity on trade and we think it will pay to wait this out,” he wrote in a note to clients Thursday.
“That being said, our desk is open for business if you’re feeling up to trading this backdrop.”
Time to blame the algos!!
Gold remains the only asset higher since payrolls...
* * *
When in doubt - wheel out Larry Kudlow...
The White House Economic Advisor, under the guise of Plunge Protector, said this morning that:
*KUDLOW SAYS U.S. HAS BEEN WARNING HUAWEI ON SANCTIONS VIOLATION
*KUDLOW: HUAWEI DOESN'T HAVE TO SPILL INTO TRADE TALKS W/CHINA
*KUDLOW SAYS CHINESE CAR TARIFFS WILL COME DOWN RAPIDLY
So don;'t worry about Hauwei, oh and remember how awesome the car tariffs cut will be...
And most notably:
*KUDLOW SAYS TRUMP MAY GIVE CHINA MORE THAN 90 DAYS
And the result, stocks go vertical...
And the dollar dumps...
Someone please complain about these algos and machines that are ruining our markets... [crickets...]
Let's see what happens next - after Nasdaq futures were levitated to green.