Equities took a dive on a lousy bond auction, the SPX printing 5830, and settling -95pts (1.6%) to 5844.
sp’weekly1b
Summary
SPX: as things are, we’re net lower for the week by -113pts (1.9%). Weekly momentum remains positive. For a bearish engulfing weekly candle, we need to settle under last week’s open of 5807 (the yellow gap… as better seen on the daily chart).
Its difficult to see the bears managing much under 5750, before resuming upward.
re: bond market.
As I’ve been saying a fair few times recently, its become clear the Trump admin’ have ZERO interest in significantly reducing Govt’ spending.
The bond market will thus respond, as it did today, demanding higher yields to attract buyers.
The US 10yr is on track for an eventual push above psy’5.00%, and when it does… that is when all sorts of things start to break.
Related chatter…
It should be clear, the dollar is still the cleanest shirt in the laundry basket.
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Looking ahead
Thursday will see Weekly jobs, PMI serv’, PMI manu’, existing home sales
Earnings: $ADI $BJ $AAP $LSPD $NNOX $RL $ATAT $CSWI $TD $ARQQ $DECK $ADSK $INTU $ROST $WDAY $CPRT $SVM $STEP $CVCO $LION
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Final note
Sure… Silver >$100, but first things… first, clearing the multi-decade double top of the $49s. I don’t expect that any time soon. The very cautious will wait until October.
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… the answer is… probably.
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When isn’t something breaking?
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Electing Trudeau was the first big compromise.
Carney… will merely make matters worse.
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If anything, Trump has directly caused a surge in capital flows, with some manufacturing returning to the USA.
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Hunter with guest Rubino. HIGHLY recommended.
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The Carlson.
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Roll the tape
Article >
‘Ramaphosa was quick to dispel the ‘conspiracy’; but Trump very quickly told his aides to ‘roll the tape’…
🚨 OMG!! Trump just dimmed the lights in the Oval Office and played, FOR the president of South Africa, the BRUTAL videos of South Africa's leaders calling for the K*LLING of white South African farmers.
He goes on to show the "burial sites" of white farmers… "those cars are… pic.twitter.com/rWn9p7Aujc
— Eric Daugherty (@EricLDaugh) May 21, 2025
FANTASTIC. That is how you do it.
You start quoting them, playing them videos… LIVE, right in front of the media.
South Africa has been acting like NAZI Germany of the mid 1930s.
Giant crowds chanting… getting hysterical about killing the white man.
Sometimes… I really LOVE Trump.
FULL video… the ‘fun’ begins around T+19mins
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Day three of ‘vacation from X’ was pretty good.
Goodnight from London