US Market Report
The treasury market is squarely in focus today. They are all at record lows(in yield).
See cap#3. This is the 30 year that represents what China holds, Japan is the second highest holder in total dollar-value.
Volumes were below averages again-not even close-the system is trapped here no doubt.
Some Headlines
Oil plummets, on track for biggest weekly drop in 2019
https://www.reuters.com/article/us-global-oil/oil-plummets-on-track-for-biggest-weekly-drop-in-2019-idUSKCN1ST01F
U.S., China exchange barbs over Huawei as trade tensions flare
https://www.reuters.com/article/us-usa-trade-china/u-s-china-exchange-barbs-over-huawei-as-trade-tensions-flare-idUSKCN1ST0PA?il=0
Crude, Credit, & Yield Curve Collapse As Stock Shorts Soar To 4-Year Highs
PMIs in Japan, Europe, and US all collapsed and risk-asset markets are suddenly waking from their delusions.
PMI's are Purchasing Manger's Index.
WTI Crude crashed to a $57 handle (its worst day of 2019).
See headline above…tick,tock SA.
US equities suffered after Huawei headlines signaled US-China trade tensions are escalating fast (and a base-case 'deal' is disappearing). "Trade War"-related stocks have given up over half their post-December-collapse gains.
He 'ain't lyin' but the reason is not credible-it's the system throwing a fit because they see this deal as the last stand.
Short interest as a percentage of shares outstanding on the SPDR S&P 500 ETF Trust, or SPY, climbed as high as 7% this week, according to data from IHS Markit Ltd. That’s the highest share since 2015, when the benchmark gauge for American equities slipped into a correction as Fed officials began boosting rates from near zero.
Eventually this will fuel a big up day because most traders are impatient and can't see much past a few days-used to be one so understand that emotion-POTUS has certainly accounted for this too.
China was ugly overnight as Huawei headlines hit.
Of course, it wouldn't be 'Murican free markets without a panic-rescue-bid (on no headlines whatsoever) into the close.
Ha ha ha you stupid idiot EU sellout- it's called PANIC.
The Dow closed below its 200DMA for the first time since January.
This is the biggest two-day drop in "Most Shorted" stocks since the Dec 24th lows.
You anons from yesterday who are short-and stated it on a public board-don't get too greedy-hope you had an exit point figured out when you made your entry-you should have.
Credit and equity protection costs spiked today (with HY most notably weaker).
This is traders taking out insurance against failure-this is a crowded trade and will get tricky to get a payout if the herd is in here.
See Credit Default Swaps.
Treasury yields tumbled on the day.
See Cap#3-again.
Across the curve this was new cycle lows for yields (5Y and 30Y lowest since Dec 2017, 10Y lowest since Nov 2017, 2Y lowest since Feb 2018).
mmmmmkay…..!
The 10Y Yield plunged below 2.30%!!
Now firmly below the Fed Funds discount rate-stupid is as stupid does Mr Powell.
The yield curve crashed back into inversion.
Markets have seen the biggest two-day drop in 5-10 year inflation expectations since mid-2017, based on futures contracts.
BBBBut how are you going to increase inflation FRB?!- hahahaha
Finally, before we leave rates-land, market expectations for 2019 Fed rate actions have collapsed to a stunning 46bps rate-cut expectation.
Nothing new here-anons know.
Here is the biggest comedy event of the day
Tesla, Inc. (TSLA)
+2.76 (+1.43%)
on about 2.3x average volume….
https://www.zerohedge.com/news/2019-05-23/crude-crashes-yield-curve-collapses-stock-shorts-soar-4-year-highs
https://finance.yahoo.com/quote/%5EDJI?p=^DJI
https://www.marketwatch.com/investing/bond/tmubmusd30y?countrycode=bx
https://www.dailyfx.com/crude-oil
It means that the yield or payout they have to give out is lower to the people or institutions that buy them. When stocks drop the yields drop because money looks for a place moar attractive than equity's. This is not good for the system as if further flattens the yield curve into negative territory.
Papa Johns CEO sells shares-$157.47m-May 21
Cap#1 is today, Cap #2 is recent.
Papa John's International, Inc. (Papa John's) operates and franchises pizza delivery and carryout restaurants and, in certain international markets, dine-in and delivery restaurants under the trademark Papa John's. The Company operates through five segments: domestic Company-owned restaurants, North America commissaries, North America franchising, international operations and all other business units. North America is defined as the United States and Canada. Domestic is defined as the contiguous United States. International franchisees are defined as all franchise operations outside of the United States and Canada. As of December 25, 2016, there were 5,097 Papa John's restaurants in operation, consisting of 744 Company-owned and 4,353 franchised restaurants operating domestically in all 50 states and in 45 countries and territories. It offers pizza along with side items, including breadsticks, cheesesticks, chicken poppers and wings, dessert items and canned or bottled beverages.
Number of employees : 22 400 people.
https://www.marketscreener.com/PAPA-JOHN-S-INT-L-INC-10589/company/
https://www.secform4.com/insider-trading/901491.htm
Intercontinental Exchange CEO sells $4.32m in shares-May 22
Intercontinental Exchange, Inc. is an operator of regulated exchanges, clearing houses and listings venues. The Company provides data services for commodity and financial markets. The Company's segments include Trading and Clearing segment, and Data and Listings segment. The Trading and Clearing segment includes the Company's transaction-based execution and clearing businesses. The Company's Data and Listings segment includes its subscription-based data services and securities listings businesses. The Company operates regulated marketplaces for listing, trading and clearing a range of derivatives and securities contracts across the asset classes, including energy and agricultural commodities, interest rates, equities, equity derivatives, exchange traded funds, credit derivatives, bonds and currencies. The Company offers market data services to support the trading, investment, risk management and connectivity needs of customers across a range of asset classes.
Number of employees : 5 161 people.
https://www.marketscreener.com/INTERCONTINENTAL-EXCHANGE-14931198/company/
https://www.secform4.com/insider-trading/1571949.htm