Goldilocks Is Dead: Stocks Slammed Despite Trade-Truce, OPEC Deal, & Jobs Gains

In a week in which we got a trade-truce, the market all but pricing out any Fed hawkishness, and Alberta cutting crude production and an OPEC deal; stocks in Europe and US collapsed...

 

Let's hope for The Santa Claus Rally... any day now...

China ended the week marginally higher (having erased almost all of the post-Truce gains)...

 

European markets were a bloodbath however, led by Germany... (down over 6% from its Monday exuberant highs to its lowest in 2 years)

 

Deutsche Bank ended the week below $8...

 

Before we start, everyone seemed to crow about the jobs print this morning as a 'Goldilocks' number - well they were half right - Gold is the only asset green...

 

Futures how the real chaos this week...

 

Bloomberg's Cameron Crise notes that yesterday's crazy dump and pump was only the 13th time since 1980 that the S&P rallied more than 2.8% but still closed lower from the previous day. Six such episodes occurred during the 2001 and 2008 recessions. The last time it happened was in May 2010 amid the European debt crisis, as my colleague Luke Kawa noted.

On the cash side it was an ugly week... with Trannies down 8%!!!

 

This happened despite utter desperation from Fed's Bullard and Brainard suggesting uber-dovishness.

The Dow and S&P back into the red for 2018 and Nasdaq up less than 1% (and Trannies and Small Caps are ugly)

 

All the major US equity indices plunged back below key technical support levels...

 

The S&P 500 'Death Crossed' today...(the last time it death crossed was Jan 2016 as the S&P dropped 13%)

 

"Most Shorted" Stocks were squeeze Monday morning and Thursday afternoon, but ended the week lower...

GSCBMAL INDEX

Financials were FUBAR this week - plunging most since March to the lowest since Sept 2017

 

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