It's been a terrible month for investors in Valeant (and Pershing Square) and it is about to get even worse following news that the outgoing CEO of the troubled company, which is under scrutiny for dramatically hiking the price of older drugs, has been summoned to testify at a U.S. congressional hearing on April 27, the panel said on Monday.
There appears to be two sure-fire ways to make money in these 'efficient' markets - Buy before The Fed speaks...
or trade 'em after midnight...
Source: @NanexLLC
To be clear, this means without the gains achieved between midnight ET and 3amET, the S&P 500 futures market since 2005 would have gone nowhere! - It seems the so-called "pajama traders" may be on to something after all?
This rally looks complete.
The S&P 500 has broken the rising wedge pattern that has sustained it throughout the bounce from the February lows.
This is hitting as new evidence suggests corporate profits are collapsing at a pace not seen since the 2008 meltdown.
This type of collapse does not occur outside of recessionary periods.
The US data has yet to show a recession hitting because:
1) Most of the initial data points are too high and will be revised down in the near future.
Earlier today we said that following the abysmal January spending data revision as shown in the chart below:
... that "the Atlanta Fed will have no choice but to revise its Q1 "nowcast" to 1.0% or even lower, which would make the first quarter the lowest quarter since the "polar vortex" impacted Q1 of 2015, and the third worst GDP quarter since Q4 2012. It means one-third of already low Q1 GDP growth has just been wiped away."
It was "even lower."
Headlines will crow of the seasonally-adjusted 'beat' of expectations for the Dallas Fed survey (-13.6 vs -25.8 exp) but this is the 15th month in contraction (below 0) - something only seen in recession. Scratching below the surface we see employees, workweek, and capex all in contraction and forward expectations for new orders and employment tumbled. Perhaps that reality is what drove one respondent to rage, "anyone who says the economy is not in recession is peddling fiction."