IN-DEPTH: TRANSCRIPTION - REGIONAL UPDATE - JUNE 2019   COVER AGENDA SLIDE 5 - EU THE EUROZONE SLOWDOWN IS MORE PROBLEMATIC THAN THE GLOBAL ONE Starting with the Eurozone, the problem here is threefold: Demographic, High state and fiscal interventionism, Lack of technological leadership If we add the political risk of some governments who want […]

IS THE S&P 500 SETTING US UP FOR A NEAR-TERM "REVERSE HEAD & SHOULDERS"? Below are some MATASII charts we will be discussing in this months LONGWave video which will be released to subscribers by mid-week. We have intentionally left the narrative for them to the video - Hope you watch for it!     […]

US DOLLAR SENDING EARLY SIGNS OF A POTENTIAL REVERSAL We have been posting this US Dollar DXY chart for a couple of years now. It has been very accurate in warning of US Dollar moves. Recently, the issue has been whether the DXY continues to follow the ellipse ring higher or separates from it. A […]

MARKET RISK "RIPE" FOR A STAGFLATION SHOCKER We have been arguing for some time now that the real concern for financial markets is an unexpected "Stagflation Shock"! We most recently outlined this in the following articles: SCHIFF: BOND MARKET RIGHT BUT MAKING WRONG BET TRADE WAR CONSUMER INFLATION DEAD AHEAD! SII – BONDS AT CRITICAL […]

CREDIT MARKETS CRACKING IN A SYSTEMIC LIKE FASHION Here are Monday's charts pulled from a report which give further detail of the yield drop shown above in the current "TNX" MATASII chart. VIX vs HY vs IG Credit markets are starting to crack more systemically... Flashing very bright warning lights to stocks...   BONDS Bond […]

GOOG, APPL, FB, AMZN CRUSHED BY “UNPRECEDENTED PROBE” BY DOJ, FTC & CONGRESS Since April 29, WolfStreet's "FANGMAN" Index has dropped 14.0%, or by $645 billion in market cap, giving up 49% of the post-Christmas rally in just five weeks.  The biggest daily drop was Monday due to what we posted previously ( TRADE WAR […]

TRADE WAR MAY TAKE BACKSEAT TO TRUMP ADMIN'S ANTI-TRUST BLITZKRIEG Major announcements Monday of anti-trust probes into Amazon, Facebook and Google (Alphabet). Trump is getting ahead of Democratic Presidential candidate Elizabeth Warren's platform. What we know: FACEBOOK: The FTC which is already preparing to levy a massive fine against Facebook for data privacy violations has […]

SCHIFF: BOND MARKET RIGHT BUT MAKING WRONG BET Peter Schiff is out with a new note that on how he believes the bond market is right about its views and reaction to the pending recession. However, he feels they are missing what the outcome of the recession will be. That outcome is STAGFLATION. This would […]

A STRONG DOLLAR ALSO BEHIND BOND RALLY Some investors are buying U.S. Treasurys without hedging against the risk of a decline in the dollar International Carry Trade investors typically hedge their holdings of foreign bonds using derivatives AS A CURRENCY HEDGE, which allow them to borrow a foreign currency in exchange for their own and […]

MARKET RE-POSITIONING UNDERWAY: HISTORIC 6 MONTH EQUITY OUTFLOWS Institutions are shifting in a massive way to Bonds and Money Market Funds as Equity Outflows over the last 6 months have been of historic and and unprecedented levels. The S&P has just suffered its third worst month since the US AAA- rating downgrade in August 2011, […]

INFLATION EXPECTATIONS CURRENTLY DRIVING TREASURY YIELDS The first charts shows the US Treasury Yields as represented by the 10Y Yield - "TNX":   Note in the above TNX chart the October Treasury peaked in yield.   Now look at the ECRI's reporting on US Future Inflation Expectations for both the US Future Inflation Gauge and […]

BONDS OVERBOUGHT ON EXPECTATION OF A FORCED FED INTERVENTION Longer-term Treasuries are overbought. These folks may consider taking some profits on exchange-traded index funds like iShares 20+ Year Treasury (NASDAQ:TLT). This would give us a bounce from our current support levels which we laid out earlier this week: Below is an article by Gary Gordon […]

ARE RECORD STOCK BUYBACKS APPROACHING AN "EMPTY TANK"! Warren Buffett is well known for comparing stock prices to GDP to assess whether stocks are becoming over-valued with inherent levels of excess risk. Stock buybacks this year continue to be financed with corporate leverage.  However, the question is how much more leverage can corporations take on […]

INVESTORS FLEEING HIGH YIELD, SIMILAR TO FINANCIAL CRISIS Investors are starting to come to a more realistic outlook about the forward-looking growth prospects, as well as the power of central banks to pump up asset prices. Tyler Durden reports that:   It seems the warnings from PIMCO's Scott Mather that: "We have probably the riskiest credit market […]

TRADE WAR CONSUMER INFLATION DEAD AHEAD! Our expectations now are for a bounce in the US 10Y Note towards a potential right shoulder on a yield basis (SEE: SII - BONDS AT CRITICAL TECHNICAL INFLECTION POINT WITH INFLATION PRESSURES LOOMING). The unexpected reason for this will be inflation pressures, likely associated with: Tariff pressures on […]