Wednesday, October 6, 2021

Morning Note: That "Distribution" Feel

Interesting action so far this morning. Overnight, as equity futures were melting down, headlines suggested it was all about rising interest rates and energy prices. However, before we made it to the cash session, interest rates turned negative and energy prices, nat gas in particular, utterly plunged. And, while off their lows (in the U.S.) stocks are still struggling notably.

I.e., as I suggested in yesterday's video, there's a "distribution" feel to the latest trading.

We'll keep this morning's note brief, I'll offer up something pithier in the forthcoming weekly message.

Asian equities continue to struggle notably, with all but 3 of the open (China on-shore still on holiday) markets we track closing lower. To give you feel for the degree, our Asia Pac ETF is off 1.96% so far this morning.

Europe's down across the board so far this morning; all 19 bourses we follow are in the red. Our Eurozone ETF is down 1.51% on the session.

U.S. stocks are lower as well: Dow down 359 points (1.05%), SP500's down 0.93%, SP500 Equal Weight is down 1.08%, Nasdaq 100 is down 0.80%, Nasdaq Comp is down 0.83% and the Russell 2000 is down 1.21%. 

The VIX sits at 22.95, up 7.75%.

Oil futures are down 1.79%, gold's down 0.13%, silver's down 0.74%, copper futures are down 1.13% and the ag complex is down 0.57%.

The 10-year treasury is up (yield down) and the dollar is up a big 0.59%.

Led by treasury inflation protection securities (our only up position to start the day), and dragged notably by KRBN (carbon credits), uranium miners, energy stocks, metals miners and ALB (lithium miner) our core portfolio is down 1.05% to start the day.

"If you are a CIO of an institutional investment fund, a portfolio manager in an asset management firm, or a C-suit executive, you also face geopolitical paradigm shifts that will, at best, make your work more challenging." --Marko Papic; Geopolitical Alpha
No doubt about it!

Have a great day!

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