, 21 tweets, 8 min read
My Authors
Read all threads
MT GLOBAL MARKETS Momentum & Sentiment as of 22Nov19 wk47

1/n

• after 5wk RiskOn with ample liquidity support via FED, seasonality effect and hopeful China deal narratives, stocks starts to run into exhaustion and consolidate.

• VIX ~complacency

• Credit Indices bit wider
2/n update Global markets Momentum / Trends / Exhaustion scores wk47
3/n update global markets YTD as of wk47
4/n CB / Yields / Curves / Ratings

• core mkts saw flattening driven by the long end

• flash PMI all ex UK bit better, EU/JP still in contraction though, US rebound

• HU/ID/ZA CBs left rates unchg, PBoC cut 5bp

• PT/AT upgraded by FITCH to pos outlook,ZA downgrade by S&P
5/n update on ITRAXX / CDX indices
6/n some recent tweets about the surging spread levels in the BAML CCC sector, here the comparison to CDX NA HY (unfunded of course), but I'd like to see CDX IG & HY moving substantially wider too to raise more flags tbh
7/n tongue-in-cheek CDX vs SPX "model" - although with a good YoY correlation - is partly distorted by the huge sell-off last year... nevertheless, SPX did "caught up".
8/n sentiment SPX : while overall breadth indicator are good, market is now <again> entering the near complacency territory, suppressed implied vola (thx FED) and very steep contango curve combination.

"Fear to Greed" = FED helpline
9/n TOMO Repo facilities stablise around $200b total ...

latest :
O/N $81b
Terms $119b

POMO T-Bill buy program will replace this over time.
10/n ...and the market seemed to have settled for the time being. curve starts to normalise but the recent yieldcurve RE-steepening with slightly higher (!) yields COULD be one of these retracements. let's see.
11/n FED watch bit LOLZ, hike probability is not 0% anymore. (although, 2020/2021 different story)

chart courtesy via QuikStrike
12/n US permits jumped to +14% YoY, (lagging) housing starts at +8.5% ...

housing and therefore consumer confidence is important as we know.

FED reversal, mortgage rates plunging <the> key element for homebuilders $ITB or $XHB or Lumber soaring in 2019. #Macro
13/n not too great has been this week's jobless claims.. .4wk avg perhaps bottomed and now keeps moving higher ?

too early to say, but as this is a very stretched long cycle, it's always worth to watch how this unfolds in general.
14/n YAAAAWWWNNNN, yeah, I know, there is a "battle" between "this time it's different" and not.

Obviously NBER recessions are calculated after they happen, and in the US it's a long way to go until it happens. But In the XXL picture, YieldCurve (YAWN), is the one to watch.
15/n another "tongue-in-cheek" chart, MacroRiskIndicator remains elevated and diverged from stocks in the big picture. Technicals / Momentum is a complete different story. There are times one can and should fight the FED and when not. We've had 47 global central bank cuts now
16/n US dashboard wk47

• Global Macro starts to improve
• US Macro is mixed, some positive factors for sure
• Global CBs and leader FED are dovish and help
• US rates supportive, FED acknowledged their previous mistakes
• RiskOnOff ratios/spreads though faded vs outright
17/n $TSLA unregular update for fans and haters ... haven't we all laughed about the Cybertruck presentation.

But hardly anyone noticed the diverging credit spread +30bp widening while stock kept rallying +5% to 361.

"suddenly" -9% drop.
18/n next week

• US CB consumer confidence ( I am looking at the Curr-Exp spread)
• US GDP (lagger)
• Chicago PMI
• Germany IFO (up)
• European ESI data (should go better)
• China NBR PMI
• and HAPPY THANKSGIVING !
19/n and this

don't look at Bitcoin
don't look at Bitcoin
don't look at Bitcoin
don't look at Bitcoin
don't look at Bitcoin
don't look at Bitcoin

damn, I looked at it.
20/n HAPPY SUNDAY FOLKS xx

and bless Jon @JBoorman #KeepFightingJon
@threadreaderapp pls unroll
Missing some Tweet in this thread? You can try to force a refresh.

Enjoying this thread?

Keep Current with Kai

Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!