Well, don’t look now but futures on all three US equity indexes are nicely green…msot brain dead trade of the past month. US stocks down on the day? Buy the futures.
Not sure how long that will last, but it’s really more of interest than of import. Looks to me like things are breaking down all over the place. Too many leaks, not enough fingers (right Snydemann?)
At any rate, JNK (and HYG) both had bad days today, and are looking quite vulnerable here technically.
Fundamentally I think they should have given up the ghost a long time ago, but here we are.
As long as we are seeing signs of growing credit stress I don’t think the bottom in equities is in. We saw some huge damage to somebody who was short naturla gas and long oil. How much? Billions I would bet.
Are they good for it? Did a counterparty risk just emerge? We’ll just have to wait and see. But it’s absolutely silly that the largest commodity in the world upon which so much depends can be whipsawed by a relatively few (one?) purely specualtive, leveraged fund(s).
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