Wednesday 14 August 2019

Midweek horror

US equity indexes closed powerfully lower, sp -85pts (2.9%) at 2840. Nasdaq comp' -3.0%. The two leaders - Trans/R2K, settled -3.0% and -2.8% respectively.

sp'daily5



VIX'daily3



Summary

US equities opened significantly lower, pressured via the US 10yr/2yr inverting, as the mainstream were again worried about an eventual recession.

Trump chimed in...


... and shortly later...


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The afternoon saw the Trump continue...


 ... and it remains a historic irony, if not tragedy, that the US President cites Payne, rather than Schiff.

The video quality is lousy, but see t+5mins..




Payne's big pick for 2008...


... Washington Mutual, which effectively imploded, with the remains picked up by JPM. I hope that at least the financial historians of the 22nd or 23rd century will see things for how they really were.
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Volatility naturally spiked, with the VIX printing 22.71, and settling +26.1% at 22.10. S/t outlook favours choppy upside into opex to the sp'2890/2900s. More broadly, cooling to at least 2800, if not the 2730/20s.
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Extra charts in AH (usually around 7pm EDT) @ https://twitter.com/permabear_uk

Goodnight from London
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