we’re spiraling into a massive DEPRESSION!! Haha yes! Bulls are going to get REKT and I’ll be proven right!! Yesss!
— MasterTrader (@Logan_JH1) May 5, 2022
Wow….today feels like Mar 2020 but without a global pandemic lockdown to blame it on
Poor Fed. Running out of excuses is no fun.
— Adam Taggart (@menlobear) May 5, 2022
I mean, I understand how Blackrock iShares passive ETFs led to the 1987 crash, and how Vanguard Group Mutual funds were behind the 1929 crash/Great Depression.
But its hard to see how they contributed both 2022's excess volatility and 2021's lack of volatility.
Its a puzzle
— Barry Ritholtz (@ritholtz) May 5, 2022
The Fed eased and eased into an epic bubble, and because of that error is now forced to hike into a recession.
How TF have these guys not resigned?
— Tom Woodland (@TomWoodland9) May 5, 2022
🇺🇸 Valuation
The S&P 500 Index remains historically expensive
👉 t.co/14i5SQVCfdh/t @SoberLook #markets #valuations #investing #assetallocation#sp500 $spx #spx $spy #stocks #valuation #stockmarket #equities pic.twitter.com/uh5OYHqLov
— ISABELNET (@ISABELNET_SA) May 5, 2022
🚀 6th largest gain for DXY in the last three years
— Michael Goodwell (@MichaelGoodwell) May 5, 2022
There have been 2 days in the past 25 years when S&P 500 futures were down 3% and 10-year Treasury futures down 1%:
👉 October 9, 2008
👉 March 18, 2020Someone is blowing up, and this is forced liquidation.
— Jason Goepfert (@jasongoepfert) May 5, 2022
Credit Impulse & Global 🌎
Sentiment pic.twitter.com/jkkUeEagkS— Win Smart, CFA (@WinfieldSmart) May 5, 2022
Supply Chain expectations @thedailyshot pic.twitter.com/rnkdmCE7cQ
— Win Smart, CFA (@WinfieldSmart) May 5, 2022
According to @AdpResearch, US small businesses shed jobs in April. pic.twitter.com/FMbZiUgzA3
— (((The Daily Shot))) (@SoberLook) May 5, 2022
30y mortgage rate
“How can you be so bearish about the economy?” pic.twitter.com/QHAEDohtHU
— 🅰🅻🅴🆂🆂🅸🅾 (@AlessioUrban) May 5, 2022
Today's QQQ down day volume was the highest since the China smash crash in August 2015. That crash took place Thursday through Monday. pic.twitter.com/LaNs6qi8rG
— Mac10 (@SuburbanDrone) May 5, 2022
Once the upper channel of the bull market is breached the bull market is over.
1998 fake breakdown, two year rally, rate hikes, bear market crash.
2020 fake breakdown, two year rally, rate hikes, bear market crash? pic.twitter.com/rfxjfZk22A
— HOZ (@MFHoz) May 5, 2022
everytime the yield curve inverts.. the FED starts cutting rates.. you're about to witness the first hiking cycle before a recession lol.. investors all over the world are panicking for this reason
the FED is trapped pic.twitter.com/IHe4OKxCxM
— 🅰🅻🅴🆂🆂🅸🅾 (@AlessioUrban) May 5, 2022
Corporate bonds now falling as much as they did in the March 2020 crash.
Back then, the Fed was forced to step in.
This time, all we hear is the opposite.
If this decline continues, either the tightening cycle will need to be reversed or we're about to see some real issues. pic.twitter.com/E9LmgC4X6V
— Otavio (Tavi) Costa (@TaviCosta) May 5, 2022
Fmr. White House Economist Warns of ‘Severe Recession’ Amid Tech-Led Selloff
I think it’s about to all end. You know, basically, there was all this stimulus money that went into people’s pockets. They saved it. And even though prices have been going up much faster than wages, consumption is kind of held up because people have that buffer stock built up from the money that they didn’t all spend during the pandemic.
Mortgage Rates Hit 5.27%, Highest Level Since 2009: WSJ
With the average 30-year mortgage rate rising to 5%, home ownership may now be out of reach for millions more Americans. WSJ’s Dion Rabouin explains the impact for potential buyers, sellers and the housing market.
Bitcoin Drops the Most in Almost a Month as Fed Optimism Fades
The largest digital currency fell as much as 8% to $36,639, the biggest intraday drop since April 11. It had gained 5.3% on Wednesday. Ether slumped as much as 7.2%. Avalanche and Solana, among some of the largest gainers after the U.S. central bank raised rates Wednesday, were down as much as 11% and 7.3%, respectively.
Markets Are At Risk Of Another Major Deleveraging Event: Felder
The unprecedented amount of investor leverage that powered the markets higher is only starting to be unwound.
China’s Services Activity Falls at Second Sharpest Rate on Record – Caixin PMI
China’s services sector activity contracted at the second-steepest rate on record in April, as tighter COVID curbs halted the industry, leading to sharper reductions in new business and employment, a private-sector survey showed on Thursday.
German Factory Orders Plummet as War Weighs on Manufacturers
German factory orders fell more than anticipated after Russia’s invasion of Ukraine darkened the prospects for the economy by adding to inflation pressure and disrupting global supply chains.
How You Know When The Fed Has Lost Control
Classic case of inflationary expectations becoming deeply imbedded in the economy or is it possibly a relative price shift as political power moves to favor labor vs. Das Kapital? We think a bit of both.