{"id":67220,"date":"2024-04-05T09:57:34","date_gmt":"2024-04-05T14:57:34","guid":{"rendered":"https:\/\/olduvai.ca\/?p=67220"},"modified":"2024-04-05T09:57:34","modified_gmt":"2024-04-05T14:57:34","slug":"something-broke-in-markets-on-thursday","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=67220","title":{"rendered":"Something Broke In Markets On Thursday"},"content":{"rendered":"
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Something Broke In Markets On Thursday<\/a><\/h3>\n<\/header>\n
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This Friday is going to be a session for active short-term traders,\u00a0and it will likely be unpleasant for investors.<\/strong><\/p>\n

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Something broke in markets on Thursday.<\/strong>\u00a0There are a few things that worry me about the latest bout of risk aversion. This is in context that I\u2019ve been an unrelenting\u00a0stocks bull\u00a0since the December Fed meeting…<\/p>\n

But now I\u2019m uneasy…<\/p>\n

The Thursday selloff confused people.<\/strong><\/p>\n

Initially, many blamed the comments from Fed\u2019s Kashkari about there potentially being no US rate cuts this year.<\/p>\n

However, a quick look at a few charts shows that (a)\u00a0yields fell rather than climbed<\/strong>, so his hawkish lines did not impact, and (b)\u00a0equities started selling off before his headlines<\/strong>.<\/p>\n

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It\u2019s never a good sign when people struggle to identify why stocks have a relatively large swoon.<\/p>\n

If an asset is weak without an obvious catalyst, it suggests that it can really get destroyed if a genuine risk materializes<\/strong>.<\/p>\n

For good order, the weakness in E-minis coincided with the oil price rise that in turn followed the\u00a0Netanyahu headlines.<\/p>\n

We have key US data this morning at a time of vulnerability for the market in terms of the Fed narrative.<\/strong><\/p>\n

We\u2019ve run a long way on the idea of the Fed being dovish\u00a0despite\u00a0a strong US economy.<\/p>\n

We\u2019re getting closer to the point where\u00a0we must acknowledge that either the Fed won\u2019t be easing soon, OR the economy is in more trouble than we thought<\/strong>.<\/p>\n

It means that we\u2019re in the unusual-in-recent-times setup where a big surprise in either direction could hurt stocks today.<\/p>\n

(For clarity and consistency, I would only see this as a multi-week consolidation\/retrenchment and not some long-term bearish turning point).<\/em><\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Something Broke In Markets On Thursday This Friday is going to be a session for active short-term traders,\u00a0and it will likely be unpleasant for investors. Something broke in markets on Thursday.\u00a0There are a few things that worry me about the latest bout of risk aversion. This is in context that I\u2019ve been an unrelenting\u00a0stocks bull\u00a0since […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[83,1806,16364,2443,4318],"class_list":["post-67220","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bloomberg","tag-bubble","tag-mark-cudmore","tag-stock-markets","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/67220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=67220"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/67220\/revisions"}],"predecessor-version":[{"id":67221,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/67220\/revisions\/67221"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=67220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=67220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=67220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}