Having tried (and failed) twice to hold $50, WTI Crude futures plunged back into the red as machines ran out of stops to churn. This triggered another notable leg lower in stocks, slamming The Dow into the red for May... Gold and bond are best since the Friday close.
Which slammed The Dow into the red for the month..
As gold is once again the best performer since the close before the long weekend...
After yesterday's US and UK market holidays which resulted in a session of unchanged global stocks, US futures are largely where they left off Friday, up fractionally, and just under 2,100. Bonds fell as the Federal Reserve moves closer to raising interest rates amid signs inflation is picking up. Oil headed for its longest run of monthly gains in five years, while stocks declined in Europe.
When it comes to the stock market, there is no single greater observable divergence right now than that between GAAP and non-GAAP earnings. As the chart below shows, while on a non-GAAP basis earnings have been hurting in recent years, with the LTM EPS of the S&P has declined to 116.4, down from 118.1 as of December 31, 2014, the real surprise is in GAAP EPS, which are back down to 88, a level last seen in 2007 when the market was about 500 points lower.
By the SRSrocco Report
Investors better be prepared as the next crash of the U.S. economy is coming. This is not based on hype or speculation, rather due to the disintegration of the underlying fundamentals. Matter-a-fact, the fundamentals are so completely AWFUL, that the next market crash will make 2008 look quite tame indeed.
Yuan devalues to lowest since 2011, US Services economy plunges, bonds rally, and USD drops... so why not extend yesterday's manic stock gains...
The short squeeze continues - "Most Shorted" stocks biggest rise in 2 months...