Bonds, Stocks, Gold Drop After Wages Pop, Dollar Jumps
The dollar is spiking, along with Treasury yields as stocks and gold are slammed following the hotter-than-expected wage growth data from BLS…
Gold is suffering the most for now…
Last Friday, when the S&P hit an all time high and inexplicably melted up in the last hour of trading in a burst of frenzied buying, we warned that according to Bank of America, “Biggest Sell Signal In 5 Years Was Just Triggered.” Incidentally, on that very day, the S&P 500 bull market became the second largest of all time last Friday, as the global equity market cap of $86.6TN rose $57.9TN from 2009 lows and $29.9TN from 2016 lows, according to BofA.
In retrospect, following what is shaping up as the worst week for stocks since 2016, Bank of America was right.
Now, in a follow up, Bank of America’s chief investment strategist Michael Hartnett confirms in his latest Flows Show that the bank’s indicator of market sentiment officially hit a “sell” signal on January 30, pointing to a downturn for risk assets.
Specifically, the bank’s “Bull & Bear” indicator of market sentiment jumped from 7.9 to 8.6 on Jan 30, driven up by record inflows to equities and strong hedge fund risk appetite.