Gold Gains, Bonds Bid, & Tech Wrecks After Jeff Gundlach's "Most Recessionary Signal" Yet

Investors clung to the positivity of The Dow today, ignoring the recessionary indications from sentiment indicators, tumble in earnings expectations, Nasdaq slump, and bod for safe-haven bonds and bullion... remember again "The Dow was green... Don't forget the FOMC 'Drift'"...

China tech stocks tumbled overnight as Huawei headlines rippled through Asian suppliers...

 

European stocks rebounded with UK's FTSE leading (closed before all the amendments were voted on)

 

 

US markets were very mixed with The Dow positively diverging from Nasdaq at the cash open, then all tumbling together into the European close...

 

The Dow desperately clung to green into the close as Small Caps, S&P and Nasdaq all ended red...Trannies outperformed

 

It appears for now that the squeeze has run out of ammo...

 

CAT rebounded modestly from yesterday's ugliness but NVDA did not...

 

Credit spreads compressed today but VIX was flat...

 

Bonds were bid today safe-havens rallied on Nasdaq weakness. Notably, the long-end continues to underperform...

 

The 16th day in a row that 10Y Yields have traded with a 2.7x% handle...

 

For the second day in a row, the dollar trod water in a very narrow range...

 

Cable chopped around (in a surprisingly small range) amid various Brexit headlines then dumped after MPs rejected the Brexit delay amendment...

 

Offshore Yuan found resistance/support at its 200DMA...

 

Cryptos dropped and popped on the day but remain lower on the week...

 

Crude (ahead of API inventory data) and Copper rebounded today and PMs rallied...

 

Spot Gold surged to 8-month highs today as gold futures triggered a 'GOLDEN CROSS' pattern (50DMA crossing upwards thru the 200DMA)

 

Gold pushed back into the green against the Yuan for 2019 also...

 

Finally, with The Fed due to make a statement (and a press conference) tomorrow, we note that since The Fed hiked rates in December, Gold is the clear winner outpacing stocks (USDollar lower)

And as The Fed prepares to tell us how everything is still awesome BUT they want to be cautious - or some such bollocks - we note the Conference Board's expectations index has crashed in the last 3 months by an amount that has always been associated with recession...

And the spread between current sentiment and expectations is the widest since March 2001, the first month of the U.S. recession that year.

And Jeff Gundlach agrees...