Mkt Fag: The steady slow decline since the open on all the indices edition
DOW Close -368.03(-1.05%)23
Smallcaps in the Russel 2000 ^RUT had the worst of all of them at -2.29%. S&P failed at 200DMA and broke below 50DMA, Dow broke back below its 200DMA and is testing its 100DMA, Nasdaq failed at its 50DMA and is making new lows, and Small Caps failed to hold above its 50DMA…FANG+ stocks have erased all of the late-March meltup back to their lowest since Nov 2020
The NASDAQ liquidations continue with the big chunks arriving and getting larger and larger each time they appear-started getting really big at 2:52pm EST with 3.37B and 3.41B 2:54pm and then 3.45B at 3:02, 3.69B at 3:26 and the last one coming in at the biggest so far at 4.04B @ 3:52pm-black dots on cap#2-biggest ones yet. Massive liquidation still going on here but they won't tell you that at all. the DOW had a big exit at 9:52am EST and then road the slow steady ride down all day like the rest of them. The same EXACT thing on the SP500 at same time-big chunk then over the 'top'.
FRB Chair "Jerry" had some moar hopium to disperse for the masses today "“We really are committed to using our tools to get 2 percent inflation back,” Mr. Powell mentioned, talking at an International Monetary Fund debate on the worldwide financial system alongside European Central Bank head Christine Lagarde and different policymakers" I bet you are committed……to an insane asylum
Gold lost a leetle today but $1950 is holding here…Ag got hammed by -0.52 -2.05% and no one mentions it when it goes up or down.-see cap#5 and the Gold/Silver ratio is back up towards 80-when they hitjob Ag and leave gold relatively alone this improves: $79.099 +1.444 (+1.86%) so yet can get (without factoring in the ridiculous premiums) 1.44 moar rounds of silver for your Oz of gold should you be inclined to exchange those. IT doesn't look like much on the chart because of Tuesdays monkey hammering of both (on the weekly settlement day too)….what a coincidence…/s
https://goldprice.com/gold-silver-ratio/
30 year mortgages crossed 5% today and not seen that for 12 years-ironically it was in the second year of Hussein's first term that happened last. Freddie Mac's latest weekly Primary Mortgage Market Survey released Thursday shows the average rate for the most common home loan in the U.S. is now at 5.11%, up from a flat 5% in the prior reading. A year ago, the 30-year fixed rate sat at 2.97%. The rate for 15-year fixed-rate mortgages rose to 4.38%, up from 4.17% last week, and 5-year Treasury-indexed hybrid adjustable-rate mortgages sit at an average of 3.75%. The week before, ARMs were at 2.29%. See Cap#3 for the Bond Complex activity courtesy of ZH chart. And as Equities slide bond yields rise. Thanks to Bullard's comments (yesterday too) that "the bond market now is not looking like a safe place to be," bond yields exploded higher again, led by the short-end (2Y +9bps, 30Y +5bps). A late-day rally - as stocks were really puking, put some lipstick on an otherwise pig-like day. On the week, the long-end is best for now (around unch) while the short-end has been clubbed like a baby seal. And dramatically flattening the yield curve, sending 3s10s back near inversion. For a sense of what is happening to the Treasury curve - look how flat the spot curve is from 3Y out.. and the yield curve is fully inverted from 6 month out in 1Y. 10Y US Breakevens surged above 3% to a new record high
Muh ¥ resumed it's march towards 130 and despite yesterdats respite-it will get there inevitably. The BOJ has already intervened on Monday so they have "shot the wad" for the week. The dollar 0.18 +0.18% and ¥ 0.40 +0.31% both rose today while the Rouble had a fabulous day-see cap#4 0.000207 +1.70%- see here https://www.marketwatch.com/investing/currency/rubusd
and this from yesterday
Russia's Rosneft seeks roubles up front in oil tenders -sources
*Aligns with Putin's demand for roubles trade in gas
*Leaves scope for other currencies but may refuse sales
*Rosneft facing fall in deals with term buyers
*May volumes would usually have been placed with term buyers
https://www.reuters.com/business/energy/russias-rosneft-seeks-pre-payment-rouble-conversion-oil-tender-sources-2022-04-20/
Here is a decent read of what I've been mentioning for the last few weeks..namely how they (BOJ) are "stuck" and will be left standing naked as every other CB raises rates and they "punt".
The Bank of Japan Cocks the Trigger
https://www.nasdaq.com/articles/asset-allocation-bi-weekly%3A-the-bank-of-japan-cocks-the-trigger
Elon Musk Secures Financing of $46.5 Billion to Complete Cash Purchase of Twitter
moar color on dhat.
Spaceboi's filing shows that his offer for Twatter amounts to about $64/sh or about 18% higher than the last one. The Twatter BoD is gonna have quite the time explaining why they are going to refuse this higher offer-if he can pull the fundage together. What his filing accomplishes is that he can "show" he has the $ to put in the amended higher offer-and Moran Stanley's (not a typo-they are morans) chunk is roughly worth $25.5 billion. The share price ain't moving though and having a hard time at the neckline so there is a BIG battle going on in it but it is solidly rooted in the mid to upper 40$ range and struggled all day just to maintain the mid $46.XX price while trading well over its daily average volume of 43.16m. Had a few big buys one at 12:06pm for 1.97m/sh and one early on at 9:32am which was likely the "Short Bus" getting out cause it has not done much since opening at that level. It's most recent high was $48.50 and that was Monday…..can't get there now. He will need to use some of his TSLA or Fake X equity as collateral and better hope those don't get hit or it's Archegos time. Helping him is that TSLA is up and over $1000 barely and then started bouning up/down over it right at 3pm EST. Serial hopium addict Cathie Wood can breathe again-she'll probably announce she has bought moar shares after upgrading it to a $5T valuation earlier this week.
Some Headlines
In lotsa luck with this news…
Foreign Demand For US Treasuries Collapses Just As Fed Launches QT
With just days left until the Fed begins winding down its gargantuan, $9 trillion balance sheet, and as rates reset higher globally amid a growing panic that the Fed is so far behind the curve yields will soar much higher before inflation is contained, a problem emerges: investors have been increasingly focused on the risk of supply/demand imbalances in Treasuries, and are starting to freak out that there will simply not be enough foreign demand for US paper. It turns out, they are right to be worried.
https://www.zerohedge.com/markets/foreign-demand-us-treasuries-collapses-just-fed-launches-qt
Yellen urges caution on Russian oil ban in EU, warns it could increase prices
https://www.foxbusiness.com/economy/yellen-european-ban-russian-oil-price-increase
Shareholders Gained 50 Times as Much as U.S. Workers in Pandemic
https://www.bnnbloomberg.ca/shareholders-gained-50-times-as-much-as-u-s-workers-in-pandemic-1.1755224
Walt Disney stock heads for 17-month low as Florida, streaming troubles weigh
https://www.marketwatch.com/story/walt-disney-stock-heads-for-17-month-low-as-florida-streaming-troubles-weigh-2022-04-21
and NFLX ahhh yes NFLX still clobbered today -7.97 (-3.52%) -but muh password sharing
As shares plunge, Netflix takes aim at password sharing, ads
https://abcnews.go.com/Technology/wireStory/shares-plunge-netflix-takes-aim-password-sharing-ads-84224027
and since I used some verbiage from ZH (bond action) they get credit-95% of these I write on muh own but will credit when credit due
https://www.zerohedge.com/markets/stocks-bonds-bloodbath-fed-drops-hawkish-hammer
https://www.marketwatch.com/investing/currency/rubusd
https://finance.yahoo.com/quote/%5EIXIC
https://www.marketwatch.com/investing/currency/usdjpy
https://www.kitco.com/charts/livesilver.html