Brent, Bitcoin, And Bonds Bounce As Rotten Apple Wrecks Tech

Today’s market malarkey was brought to by the number ‘-12’ – the size of the drop in homebuilder sentiment that, ex-COVID-lockdowns, is the largest in history; and the word ‘Apple’ – which is reportedly slowing hiring and spending ahead of economic uncertainty.

Everything was looking great pre-market until Apple reports hit (or maybe it was this…)

Walk of shame live on CNBC pic.twitter.com/HHInuXFJGz

— Kenny Lay (Parody) (@EnronChairman) July 18, 2022

And as goes AAPL, so goes ‘Murican stocks… Nasdaq swung from +1.5% to -1% on the day

Nasdaq ripped back above its 50DMA early on before AAPL spoiled the party…

This is not the first time the Nasdaq has tried and failed at its 50DMA recently…

Cyclicals were panic-bid at the open – on a big squeeze – but gave most of it back as the day wore on. Defensives ended at the lows of the day…

Source: Bloomberg

Bonds were higher in yield on the day but as stocks started to tank so did yields reversing as Europe closed…

Source: Bloomberg

10Y Yields pushed back above 3.00% but as stocks rolled over bonds were bid and 10Y fell back below 3.00%…

Source: Bloomberg

The dollar was whacked lower today, reversing off the March 2020 highs…

Source: Bloomberg

Intraday was remarkably technical with the dollar rejecting 1298.1 (3/23/20 highs) and finding support at 1280.78 (1/03/17 highs)…

Source: Bloomberg

Ethereum ripped back up to $1500…

Source: Bloomberg

…significantly outperforming Bitcoin…

Source: Bloomberg

Gold closed unchanged after surging during the Asia session and then saw constant selling through Europe and US sessions…

It appears Biden’s cunning plan – to look MbS in the eye and get him to produce more oil to save the American President’s approval ratings – is not working as oil prices are up dramatically since the fist-bump heard around the world with WTI testing back up to $100…

Finally, something’s gotta give…

Source: The Market Ear

Consumers are still spending, consumer sentiment still record-low: at the tipping point?