Bond Massacre Continues and the Fed Dove Rally Fails Already – Mish Talk
Indexes and Bonds courtesy of Investing.Com
Well, That Was Fast
Smack in the face of yesterday’s rally attempt on very dovish Fed comments, both the stock and bond markets revolted today.
Yesterday’s Action
Indexes and commodities courtesy of Investing.Com
Yesterday the Nasdaq rallied under 400 points. As I type, it is now down over 600 points.
Six Things Guaranteed to Be Transitory
Stocks, Gold, Oil, Rip Higher as Dovish Powell Wins Hoot of the Day Award
That was my observation after yesterday’s action. In my post, Stocks, Gold, Oil, Rip Higher as Dovish Powell Wins Hoot of the Day Award I also made these comments.
The reaction today does not change in the least. We are now in a bear market. This is another Fed-induced bear market orgy that won’t last.
All Powell can do is prolong the pain. How is the jump in crude today in the Fed’s (or anyone’s) best interest?
Powell would be better off getting it over with. But he won’t. And he is clueless about what’s coming.
The longer the Fed tries to stave off recession, the deeper it ultimately goes. We are headed for a waterfall event.
Hoot of the Day
- Reporter to Powell: “Do you think the Fed has a credibility problem?”
- Powell: “No, I don’t …. And I want to keep it that way.”
That was from the post FOMC Q&A video that I watched.
For his performance, and arrogance, Powell wins my Hoot of the Day award by a landslide.
Cathie Wood Bonus Hoot
Beautiful Observation by Suburban Drone
Stopped Already
Scroll to Continue
Yesterday and Today
Yesterday: “This is another Fed-induced bear market orgy that won’t last.”
Today: “Well, that was fast”
Panic Buying Turns to Panic Selling
Tick counts are a measure of stocks bought on upticks (rising markets) or downticks (declining markets).
Sustained counts over +1000 is panic buying, under -1000 is panic selling.
My hoot of the day is this observation “Panic Buying Turns to Panic Selling“.
Will add a tick chart as soon as I have one.
Repeating Comments Made Many Times
The S&P 500 could and probably will decline 50% from the top. And if it does stocks will not even be cheap.
I repeat my April 22, 2022 message Expect More Stock Market Pain Because It’s Coming
By the way, If You Think I’m Bearish Please Read John Hussman.
This post originated at MishTalk.Com.
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