Mkt Fag: Nasty reversal on the indices…muh margin calls next?-prolly not-cause leverage is mistaken for brians edition
Got off to a decent start-the shorts squeezed on the open-lather, rinse, repeat on that and the excuse earlier was "muh inflation wasn't as bad as it could have been"- see here >>16061354, >>16061605 pb
Got the end o' the day stick save into the close to make it "not as bad" but inflation don't lie…only Wall Street does. Still a big exit here though- >>>/qrb/133061…they "know". Add in a few shorts covering cause it wasn't just "longs" buying the close-but it made it appear better than the nasty reversal you just saw all day. NASDAQ volume really picked up into the close and the same pattern continues-big volume on open followed by lower than picks up into close a "U" shape if you please. And all three majors well under daily averages volume-wise: been that way for a few weeks excepting the "launch" during FOMC week mentioned below. Small caps (RUT-Chicago Options ) was the only decent one today as it only went red for a short period of time and it still moves around after the majors close. They also couldn't get those shorts to cover en masse (the "Most shorted Stocks")-but some did into close-already mentioned.
The latest to "speak" Fed Head Brainard just repeated the overused cliche that "We are ready to get to work"…the dollar responded by climbing…again after the cliff dive at 8:30am EST when those "lower than expected" CPI #'s released-see cap #4
Go here if you want the real skinny on inflation-haz always had the truth and calculates it using the older methodology they have changed many times over the last 30 years-it still isn't 100% spot on but it's better than most: https://www.shadowstats.com/
You all shop and see what is habbeneing-you don't need the MSM to tell you what you have witnessed over the last year and a half. The fuggen idiot at Blakcrock said this: “Predicting where we would have been today several months ago would have been next to impossible, particularly given some of the exogenous shock to the system we’ve witnessed Rick Rieder, BlackRock Inc.’s chief investment officer of global fixed income”-BULLSHIT it was already heading this way because all you fuggers already priced in rate cuts starting in 2023 back in February-so GFY >>>/qrb/126758 pb.
This was all gonna habben any way…Russian "invasion" or not.
It the huge shit pile of derivatives that has gotten us here and effectively kept the petro-dollar "alive" cause it died in the late 90's and it's only because of that has it remained "viable". Over $48T in OTC derivatives at JP Morgan sez you are ALL FOS and that is just ONE example. Whatever "turd" they lay tomorrow (JPM) the stock will go up-mebby not on the same day but they always do the opposite because the crowded trade is to be short these numb nuts so the don't want to "pay out" on that cause they don't have the $$ on that level-why you saw the markets sky during the FOMC announcement week as that was a crowded trade short and eviscerated any short positions still left going into the OpEx expiry.
The U.S. consumer price index rose 1.2% last month, the biggest increase in 16-1/2 years and cementing the case for a 50 basis points interest rate hike from the Federal Reserve next month. The figure marks the fastest rise since December 1981 and follows a 7.9% annual increase in February-see below on bond market. It rose 8.5% in March compared to the same month last year. Oil up-see cap#5 because OPEC said they couldn't replace the supply loss from Russia-they about 10% of total oil production-not a problem but somehow it is. They are just driving the price up for the coming Aramco IPO by playing coy-"see you need us…". The Yen still climbing towards that ¥130 spot and solidly over 125 now. Got to ¥125.73 at about 2:38am EST then backed off. https://www.marketwatch.com/investing/currency/usdjpy
XLF-the bank ETF got juiced upwards too but has also had a nasty reversal-JP Morgan 'announces' tomorrow (and it's equity is down almost 16% YTD) and likely just take loss reserves and apply it to bottom line while also buying back shares-old, tired game that.
https://finance.yahoo.com/quote/XLF
And the 10 year gettin whipped around as it was up over 2.8% (2.832% just before 4am EST)-before plunging after the CPI print…imagine that.
https://www.marketwatch.com/investing/bond/tmubmusd10y
Moar on Treasuries in next post
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