…this is already ugly.
Stocks are down pretty solidly across the board, and bonds are rallying very weakly.
On the other side of the ledger, and which muddies the evaporating liquidity story, is that the Junk Bond ETF, JNK, is not really budging.
From an “outside in” perspective, the JNK ETF really needs to be signaling something very different than it currently is…
It’s saying “no problemo!”
Meanwhile, the precious metals are behaving very well, and as one would expect for a “risk off” event.
Again, one odd note…and that’s copper. If the stock sell-off was due to underlying concerns about growth Dr. Copper should not be green here today. Another cross signal to digest…