Bitcoin hit $34k on short squeeze
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Shares of US firms that miss profit estimates are falling by the most in four years:
Bloomberg Intelligence
Magnificent Seven? How about Magnificent Mondays?
While the S&P 500 is up over 10% YTD, without Mondays it would be fractionally lower. Source: Bespoke
The SP500 has now lost $3.5 trillion in value since the Fed removed a recession from their forecast
The Fed marked the exact high in July 2023 with their "no recession" call. Since then, the S&P 500 is down 9% and just hit its lowest level since May 31st. We are also 1% away from entering correction territory just as earnings season begins. Source: The Kobeissi Letter
China’s Nasdaq-Style Index falls to record low:
Star 50 index, which tracks manufacturers, chipmakers & biggest comps on Star Board, falls to lowest since its inception >3yrs ago as investors’ confidence wanes. Set for 6 straight mths of decline. Source: HolgerZ, Bloomberg
MARKET BREADTH NEGATIVE ALERT >>>
SP500 Market Breadth drops to lowest level of the year as only 35.38% of Index Stocks are trading above their 200 Day Moving Averages Source: Barchart
As stocks tumbled, the VIX soared
And after 105 consecutive days of closing below 20, the longest streak since 2019, the VIX index finally closed above 20 - in fact above 21 - breaking the streak on day 106. Source: www.zerohedge.com, Bloomberg
This is the first time since 2000 that Treasury Bills are yielding higher than the S&P 500 earnings yield
Even during the 2008 Financial Crisis, cash never yielded higher than S&P 500 earnings. And the gap between the SP500 earnings yield and cash is widening. Competition from cash and bond yields versus stocks keeps rising. For a USD-reference account investor, here's the median Return by Asset Class: 1. High Yield Savings Accounts: 5.5% 2. 6-Month Treasury Bill Yield: 5.0% 3. Investment Property Cap Rate: 4.5% 4. S&P 500 Earnings Yield: 4.2% Bottomm-line: Cash and Treasury Bills are now paying a HIGHER yield than real estate and the S&P 500. In other words, risky assets are paying less than risk-free assets, i.e taking a risk is compensated LESS than just holding cash. Source: The Kobeissi Letter
