Morning Note: Financial Gravity Suspended

Friday is definitely on my top-7 list of favorite days of the week, as it’s the day I score our macro index, so I’ll be keeping this morning’s note short and sweet.

Asian equities closed out the week on somewhat of a negative note, 11 of the 16 markets we track traded lower overnight. Europe’s bouncing big following yesterday’s drubbing, with 17 of the 19 bourses we follow nicely green this morning. US major averages (save for the Russell 2000) are following through on yesterday’s late-day momentum: Dow up 307 points (1.08%), S&P 500 up 0.85%, Nasdaq up 0.94%, Russell 2000 up 0.08%.

The VIX (SP500 implied volatility) is down -2.86%, VXN (Nasdaq vol) is down -3.82%.

Oil futures are off -1.07%, gold’s flat, -0.01%, silver’s up 0.55%, copper futures are down -0.49% and the ag complex is flat, -0.07%.

The 10-year treasury is down (yield up) and the dollar (juicing equity markets this morning) is down -0.23%.

Led by healthcare, Eurozone equities, industrials, materials and tech, our core portfolio is up 0.42% as I type. Energy, banks, gold and ag commodities are a drag.

I’ll leave you with this echo of yours truly’s thinking and experience from one of today’s deepest and most-respected macro thinkers, Artemis Capital’s Christopher Cole:     emphasis mine…

“Flows are the only thing that matters today.

Policymakers sought to stop a credit cycle with liquidity so people mistake liquidity for reality.

Financial gravity suspended, but not indefinitely, “flow guru” trading wins big in short term, but not long run.”

Have a great day!


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