Yesterday was a really critical session to see if there would be any reversal from Friday’s reaction to Hungary and the lower than expected U.S. jobs data. The expectation at the open was that we would probably see some sort of bounce; however, instead, the market sold off again.
It is rather amazing that there is still so much chitter- chatter of bonds being in a bubble
Yesterday was a “clean” day — no policy announcements, no downgrades of any European credit, no adverse economic data ... Yet, the stock market could still not muster any headway
As Bob Farrell would say, “it is the market that makes the news; not the news that makes the markets.” Yesterday’s action was a clear sign that supply- demand dynamics in the equity market are decisively bearish.