Stocks Slump As Post-Election Surge Ends With Post-Powell Purge

It was such a great ride… until today…

China stocks started the week confidently but ended weak with Shanghai Composite back below the 2600 Maginot Line…

 

Very mixed picture in Europe with Spain outperforming, Italy worst and the rest unch…

 

A roller-coaster week of oddness as US stocks were bid on post-election ‘gridlock’ when it was the opposite of gridlock that has sent stocks higher in the last two years… and then dumped when The Fed explained how great the economy was (and therefore it needs to be tamped down by hiking rates)… and then the ubiquitous Friday-closing-ramp…

 

Futures show the post-election pump and post-Powell dump best…

 

Dow bounced at its 50DMA, S&P bounced at its 200DMA, NASDAQ ended up below its 200DMA

 

On the week, Communication Services was crushed and Healthcare outperformed (especially post-election)…

 

FANG Stocks ended the week in the red after giving it all back today…

 

Financials outperformed (perhaps because they know Maxine Waters is running the show now), even as the yield curve flattened notably post-Fed…

 

GE was a bloodbath…

 

Treasury yields tumbled after the stronger than expected PPI print struck and extended on Navarro’s hawkish tone…30Y outperformed dramatically, 2Y was worst…

 

The Yield Curve flattened significantly on the week…

 

Breakevens tumbled today, finally catching down to crude’s collapse…

 

The Dollar was up for the second week in a row, erasing much of the drop from two weeks ago…

 

Offshore Yuan tumbled this week – its worst week since July

 

Bitcoin was unchanged on the week, Bitcoin Cash (ahead of its fork) was up 20%…

 

Dollar gains left their mark on the commodity space which ended notably weaker across the board…

 

WTI Crude fell for the 10th day in a row, retracing 50% of the two-year uptrend’s gains…

 

That is an all-time record losing streak…

 But if you think WTI below $60 is bad – Canadian crude is back below $20!!

And the good news is – gas prices should come down…

Gold had an ugly week as the dollar rallied…

And while Yuan was weak, it strengthened notably against gold…

Finally, completely burying the lead, we note the price action of the largest equity market capitalization index in the world – the $24 trillion NYSE Composite…

As Brad Wishak notes, “Text book throw back fail at both the 200 and uptrend resistance…Bull trap the call from here…It’s just a matter of trickle down…”