Macro + Technicals needed a trigger = COVID-19

some stocks markets were overvalued, technically overbought after a parabolic move on complacent FOMO.

Coronavirus is temporary, but a monster wake up call on global supply-demand chain disruption shock.

Hence Macro + Technicals needed a trigger = COVID-19 pic.twitter.com/QJRBKmARBu

— 𝘬𝘢𝘪 (@MacroTechnicals) February 28, 2020

just woke up and thought,

• coronavirus nowhere under control
• huge global supply/demand shock
• global stocks -13% in 6 days
• VIX at 40 !
• outlook so bad, FF pricing in 3cuts
• oh, and a socialist with a recent heart attack is leading with a huge margin

GN

— 𝘬𝘢𝘪 (@MacroTechnicals) February 28, 2020

BINGO t.co/GLqMpKbuwr

— Danielle DiMartino Booth (@DiMartinoBooth) February 28, 2020

#recession … #UST #YieldCurve edition

2yr #yield = 0.98% 👀
10yr #yield = 1.19% 😬
30yr #yield = 1.68% 😱 t.co/JgiFFImnWG

— Invariant Perspective (@InvariantPersp1) February 28, 2020

Just off the phone with a large hedge fund mgr who says, in his opinion, the market is screaming that it doesn’t believe the Administration is anywhere near ready to deal with this, including doubts about the appointment of VP Pence as point man.

— Scott Wapner (@ScottWapnerCNBC) February 27, 2020

$VIX at 47 with $SPX at just a 12% drawdown? 🤔

Who's bluffing? pic.twitter.com/GsCCSwRgpa

— 🔴 I. Vodenitcharov CFA CMT 🦠 (@iv_technicals) February 28, 2020

Major CEOs who stepped down in the past month:

-DISNEY
-MASTERCARD
-LBRANDS
-UBER EATS
-HULU
-MGM
-IBM
-LINKEDIN

What's going on, y'all?

— Grace 🔎 (@reallygraceful) February 26, 2020

The carnage in markets is severe.

You can now buy some high quality stocks at bargain basement prices:

– MKTX 44x EV/EBITDA
– FICO 43x
– CME 36x
– INTU 31x
– PG 29x

You get the idea.

— Jonathan Tepper (@jtepper2) February 28, 2020

I know you've all seen the headline about fastest correction in S&P's history. But don't forget credit stress! On week, this 102bps spread blowout is the largest rise in US HY spreads since 2011. pic.twitter.com/SPGll0y9TK

— 𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐭 𝐌𝐚𝐫𝐤𝐞𝐭 𝐇𝐲𝐩𝐞 (@EffMktHype) February 28, 2020

Investors pulled $1.5bn from HYG on Tuesday alone, a record single-day redemption, helping drag the ETF’s assets down to $14bn by the end of Wednesday. In January, the fund’s assets sat at $20bn, near an all-time high. t.co/oUei6ki3nP via @RichHend @JARennison #JunkBonds

— Jennifer Ablan (@jennablan) February 28, 2020

Yen Soars as Investors Stampede to Safety

Equity markets have tumbled, as investors dumped riskier assets and piled into safe-haven currencies, sending the Japanese yen, which has regained its safe-haven status after last week’s brief wobble, to a 3-1/2-week high of 108.51 versus the dollar JPY=EBS, trading last up 0.8%.