Following Manufacturing's drop, the US Services sector PMI disappointed in November, falling to its lowest since June (as business confidence tumbled to its weakest since February). Average selling prices soared as growth slumped setting the scene for a stagflationary future. ISM Services confirmed this weakness, tumbling to 3-month lows.
Authored by Erik Norland via CME Group,
We freely admit: Figure 1 is probably the strangest chart that you will ever see, at least in finance.
You may be wondering: did they throw blue spaghetti noodle on paper for inspiration and then write an economics article about it? Or, have they spent too much time with disciples of psychologist Timothy Leary, a proponent of experimenting with psychedelic drugs?
Figure 1: Weirdest Chart Ever
"probably nothing..."
The Treasury yield curve continues to plumb new cycle lows with 2s30s now below 94bps and 5s30s testing below 60bps...
If the tax deal is so 'growthy' - why is the yield curve signaling degrowth?
Who's right about growth? Bonds or Stocks?
"Last week, after making new highs, the NASDAQ “reversed” to the downside. It bounced from there, but yesterday’s action was horrific, for having opened sharply, violently, surprisingly higher, by the day’s end the NASDAQ was sharply, violently, surprisingly weaker and it was so even as the Dow finished higher on the day, albeit materially below its peak. This morning, as we write, the Dow futures are higher but the NASDAQ is weaker… again!" - Dennis Gartman
Another dip to be bought as the weekend's pump'n'dump in Bitcoin has led to yet another new record high this morning at $11,850.
Bitcoin's market cap is now $200 billion...
This resurgence comes after a week of considerably more active propagandizing from the establishment.