....as I posted last morning, how nimble are you? One day late in selling makes a big difference in a highly volatile market.
....If one waits for the penultimate moment, one may just get trapped. And as I posted yesterday, ASX is poised to test the 7k mark on Monday and would be interesting if that can hold before market closes.
....Potentially more bad news in the offing or perhaps a turnaround when Microsoft reports on Tues (US). Plus the Ukrainian crisis is escalating (see previous post).
....Everything is seemingly coming true as this thread had predicted earlier
(a) A repeat of Jan/Feb 2020 , correction from the peak, although I did not say its Big Kahuna 2.0. It may not be , unless we get a big fund implosion but a Russian invasion of Ukraine could cause mayhem....but a serious correction similar to Feb 18 could cause many to lose money and stay out of the market....the death of exuberance especially in speculative/hyped sectors
(b) When sell off comes, everything gets sold down including gold miners
(c) The only place to hide is CASH (yes, which pays barely any returns) then when carnage ends, time to Buy Buy Buy (but there will be Flight to Quality ).
Tech leads slide on Wall Street; bitcoin sinks Vildana Hajric and Emily Graffeo
Jan 22, 2022 – 5.00am
US stocks fell, capping the worst week since the outbreak of the pandemic roiled markets, with tech shares bearing the brunt of the sell-off amid shaky company earnings and prospects for higher US interest rates.
The S&P 500 closed below its 200-day moving average, a key technical level, for the first time since 2020.
On Wall St: Dow -1.3% S&P 500 -1.9% Nasdaq -2.7%
In New York: BHP -4.5% Rio -2.4% Atlassian -2.9%
Tesla -5.3% NYSE Fang -5.3% Amazon -6% Netflix -21.8%
Apple -1.3% Meta -4.2% Microsoft -1.9% Alphabet -2.6%
The tech-heavy Nasdaq 100 slid the most among major benchmarks Friday, led by a more than 20 per cent plunge in shares of streaming giant Netflix.
Another rough session in New York. Bloomberg
Bitcoin tumbled in an extended selloff for cryptocurrencies, briefly falling below $US38,000 to its lowest level in more than five months; it was down 9.7 per cent to $US38,013.02 near 8.30am AEDT on bitstamp.net.
Volatility that has gripped markets this month showed little sign of letting up Friday, with the S&P 500 falling for a fourth day, extending losses in the period to 5.7 per cent for the worst, albeit shortened, week since March 2020. Option expirations of more than $US3 trillion helped add to market turbulence.
“This is the longest short week, I think, in history, right?” Jay Pelosky, founder and president of TPW Investment Management, said on Bloomberg TV. “It’s only been a four-day week and it feels like it’s been two weeks rolled into one.”
Wall Street was closed on Monday for the Martin Luther King Jr holiday.
Spot gold -0.4% to $US1832.39/oz at 4.33pm New York time
Brent crude -0.8% to $US87.67 a barrel
US oil -0.9% to $US84.75 a barrel
Iron ore +2.8% to $US137.40 a tonne
The US company reporting season so far has been uneven, highlighting the risk that it may fail to enliven animal spirits in the stock market.
While Netflix’s disappointing subscriber outlook sent its shares tumbling, while Peloton Interactive suggested it was poised to rebound after the darling of the stay-at-home trade was hit by a report of temporary production halts.
Markets are also bracing for rate lift-off by the Federal Reserve. Economists surveyed by Bloomberg expect policymakers to raise interest rates in March for the first time in more than three years and shrink their balance sheet soon after. Fed is biggest near-term risk
Geopolitical tensions are also adding to the jitters. A report that Washington is allowing some Baltic states to send US-made weapons to Ukraine stoked concerns about a standoff with Russia.
The yield on the US 10-year note slid 4 basis points to 1.77 per cent near 4.30pm in New York.
“There are plenty of risks in the global economy, including geo-political events,” wrote Ethan Harris, head of global economics at Bank of America Global Research. “However, in our view, the biggest near-term risk is right in front of us: that the Fed is seriously behind the curve and has to get serious about fighting inflation.”
The Fed’s policy committee meets next week with a statement on Thursday AEDT; the central bank is expected to signal more clearly its intent to start lifting interest rates in March.
Demand for havens pushed the 10-year Treasury yield down about 10 basis points in three days, leaving the rate lower on the week, the first decline for the period in five weeks.
2-year yield: US 1.01% Australia 0.83%
5-year yield: US 1.56% Australia 1.58%
10-year yield: US 1.77% Australia 1.91% Germany -0.07%
US prices as of 4.29pm in New York
The sell-off in equity markets has volatility indexes pricing more turbulence near term than in the future. The setup, known as an inverted VIX. Such an inverted curve has occurred four other times in the past year and all coincided with market bottoms.
“We’re all going to breathe an extra sigh of relief once this session finally closes and then we can put an end to this week, because it’s been painful all around,” said Adam Phillips, managing director of Portfolio Strategy at EP Wealth Advisors in Torrance, California.
Bloomberg
