Dr. Copper and Captain Crude are in significant disagreement over the state of the world... or it is just algos gone wild once again?
Crude jumps back above $37 for no good reason whatsover in the face of a surging dollar.
Copper plunges to one-week lows.
Investors Beware - Credit Market Collapse Warning
Money Week editor John Stepek has looked at the recent mutual fund collapse in the junk bond market and correctly warns that it is a canary in the coal mine:
If you were around during the financial crisis, you might remember that fund closures became one of the canaries in the coal mine.
According to the latest survey from Gallup, this is the highest percentage of Americans to mention terrorism in a decade, although it is still lower than the 46% measured after 9/11.
Before 2001, terrorism barely registered as the most important problem facing the country.
So are the terrorists winning? Or the fearmongers?
On numerous prior occasions (here, here and here) we have explained why Jefferies, as the last "pure-play" investment bank left standing and thus with a legacy one-month offset year-end calendar (Nov 30 fiscal year-end) is the best harbinger of Wall Street's reporting season: "it provides an invaluable glimpse into the fortunes of its Wall Street peers with a 4 week advance notice."
If there is one chart that tells the 'truth' about the US equity 'market' it is this. Not only has breadth collapsed back to Black Monday lows (despite elevated index prices) but yesterday's exuberant rip higher diverged dramatically from a very significant drop (3 decliners for every advancer) in overall market breadth. Yes, it's Fed week, and OPEX, but the underlying support for the ponzi is waning rapidly.
Charts: Bloomberg