Disney, Dimon, & A China Debt Surge Lift Stocks As Economic Data Collapses

Just keep repeating: "the market is not the economy"...

Except that is the exact opposite of what former Fed Chair Alan Greenspan told the world this morning, explaining that much of the improvement has come from a rise in stock market prices:

He sees a “stock market aura” in the economy.

A rise of 10 percent in the S&P 500 corresponds to a 1 percent real GDP increase, he said. The S&P 500 has risen nearly 16 percent in 2019 and is on track for its best performance in history should current trends hold.

So who is right - Greenspan or the asset-gatherers and commission-takers?

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China was weak on the week with ChiNext's worst week since before Thanksgiving (after rising for 9 straight weeks)...

 

Mixed picture in Europe this week with Italy and France outperforming and Spain the laggard...

 

US futures show the moment that China credit and trade data hit, sending stocks soaring...

 

On the week, Trannies were the big winners as Small Caps clung to gains and The Dow scrambled today to get back to breakeven on the week...(despite utter desperation in the algos, The Dow ended the week red)

 

Notable decoupling between the market and "most shorted" stocks the last two days - do not see this very often at all...

 

LYFT crashederer (blowing below $60!!)...

 

DISney lifted The Dow dramatically and sent NFLX lower...

 

Chevron tumbled as it bid for Anadarko...

 

And then there was JPM - which surged on record results and Dimon's bullish remarks - compared to Wells which was ugly...

 

Treasury yields were all notably higher on the week, led by the belly up 7-8bps...

 

10Y Yields rose back above 2.50%, back up to the March FOMC levels...

 

The market has erased almost all of the extra dovishness priced in since the March FOMC meeting...

 

The Dollar Index (DXY) ended the week lower, back below the Maginot Line of 97.00

 

For the seventh week in a row, China's Yuan was flat (thanks to a big jump overnight)...

 

Bitcoin and Ethereum held on to gains for the week as Ripple and Litecoin tumbled...

 

Despite the USD weakness, PMs were weaker (with silver slammed) as copper and crude gained...

 

Gold is trading at its 'richest' to silver (86.1x) since 1993...

 

Commodities and rates are aligned in their view of reflation (nothing much)...

 

Because, remember, fun-durr-mentals don't matter!!! Only global money supply does...

Never Forget... they're still out there...