Business

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

Despite already record levels of "long USD", from Cable to EUR, traders are dumping everything and buying USDollars, sending the USD Index surging off overnight lows. At the same time, Treasuries are being dumped en masse with the bellyu of the curve up 15-17bps since Friday.

The USD is going vertical...

And bonds are being dumped...

But the problem for stocks is that USDJPY seems to have lost control...

Charts: Bloomberg

Submitted by Leonard Brecken via OilPrice.com,

Where most analysis on oil markets tends to fall short is on the depth of analysis vs. reading headlines and group think, the latter of which is heavily shaped by misinformed media and government propaganda.

Among the many consensus expectations from Yellen tomorrow is that the Chairwoman - while hiking rates by 25 bps - will cushion the announcement in extensive language explaining why this is the most dovish rate hike in history, a message which will likely be conveyed by a decline in slope of the Fed's "dots", suggesting fewer hikes over the next year.

However, that is a problem and as Deutsche Bank explains there is really no such thing as a "dovish rate hike." Here is DB's Dominic Konstam:

The Fed is “right”