Well that really escalated quickly…
After last week’s “paint the tape ahead of a long-weekend” melt-up into the close, the first trading day of the second quarter was a bloodbath… In fact the worst since The Great Depression…
As David Rosenberg (@EconguyRosie) summed up so precisely: New math: every tweet by @realDonaldTrump subtracts 70 points off the Dow. Keep ’em coming.
Woah…a ubiquitous opening bounce, then puked into Europe’s close, then another attempt to ignite momentum, fails and stocks puked into red for the year again…
3rd dead cat bounce in a week…
The S&P 500 and The Dow broke below their critical 200DMA… (Nasdaq is closest to its 200DMA since Brexit plunge) –
there was a desperate last few minutes attempt to rally ’em back above the 200DMAs – Dow ended back above its 200DMA
First time the S&P has closed below the 200DMA since June 27th 2016 (Brexit)
VIX topped 25, leading the US equity index vols higher today…
Tech led the tumble…
Lowest close for NYSE FANG+ Index since January 5th…
With Tesla bonds…
and Stocks really ugly – We suspect Elon is regretting the April Fools’ joke…
Tesla Tumbles After Elon Musk Jokes About Bankruptcy
This morning shareholders of Tesla are hardly laughing, with Tesla stock tumbling as much as 5%, down to $254, the lowest level in a year.
And the 10Y Yield dropping to neat two-month lows…
***
The very next day…
Stocks Soar After Bloomberg Report Unleashes Amazon Buying Panic
It was generally a quiet day, with no macro news and equities range-bound, seemingly spooked by the ongoing verbal war between Trump and Jeff Bezos, where first in a tweet then a White House press conference, the president warned that US taxpayers will no longer subsidize Amazon “by the billions.” And, as has been the case recently, every time Trump spoke or tweeted, Amazon turned negative.
And then, just around 2:45pm, a Bloomberg headline hit, according to which President Trump is not formally looking at options to address his concerns with Amazon, which immediately unleashed a buying panic first in Amazon and then across the broader market:
Easy Money Martin 