06.05.22 Macro Morning
Chris Becker | May 06, 2022 08:51
What the hell was that? Wall Street completely flopped overnight with the NASDAQ losing 5%, the S&P500 down over 3% in a big reversal from the post-Fed exuberance. This is unsettling given the only couple times this has happened before was early 2008 and early 2020 before well, you know.. Bond markets saw a big selloff as well with 10 Year US Treasury yields jumping up to the 3.1% level as the USD screamed back to its 20 year plus high against nearly everything, with the Australian dollar sold off very sharply as a result. Commodity prices whip-lashed with some minor up movement on oil markers, while copper and gold pulled back alongside iron ore.
This is not going to be a pretty last session of the trading week for Asia today.
Crypto markets flopped more than twice that of stocks with Bitcoin down over 10% and returning to its downward trend from its March highs, after making a false break on the Fed rate rise exuberance. My contention of the prior moves building for a further retracement down to the February lows at the $37K level has shown through here, with new lows made in the process as the $30K target is building next:
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