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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (19496)	7/6/2017 12:55:24 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

U.S. Stocks Retreat as Sovereign Bond Drop Deepens: Markets Wrap By Samuel Potter and Jeremy Herron July 5, 2017, 6:16 PM EDT July 6, 2017, 11:34 AM EDT U.S. Treasuries joined a selloff in European government bonds sparked by weak demand for French debt, heightening a nervous mood that spilled into the American equity market. Oil soared as crude stockpiles fell, and the dollar weakened following a private report that showed the pace of U.S. hiring moderated. The yield on 10-year Treasury notes climbed six basis points to 2.38 percent, capping a surge of 25 basis points in nine sessions. The S&P 500 Index halted a three-day advance, while the Nasdaq 100 Index slid 1 percent. The yield on benchmark *German bunds hit the highest since January 2016.* The Stoxx Europe *600 Index dropped the most in a week. Gold and silver retreated.* The selloff in bonds comes as *central banks from Asia to Europe and the U.S. have taken a more hawkish stance as they seek to remove nearly a decade of accommodation.* The rise in yields has started to weigh on equity markets just as data show growth in the American economy may be moderating. European Central Bank officials considered when they met last month *removing a pledge* *to increase bond-buying, while ADP Research Institute data showed companies adding fewer workers to U.S. payrolls in June than than the prior month. On Wednesday, minutes from the Federal Reserve showed a lack of consensus about when to shrink the central bank’s $4.5 trillion balance sheet, and how to approach policy strategy in a time of low inflation. http://www.bloomberg.com/news/articles/2017-07-05/asia-stocks-face-mixed-start-as-fed-minutes-parsed-markets-wrap --------------------------------- andy brenner was interviewed by Rick Santelli this morning. Brenner commented on a common theme that all global rates have shot up at least 20 , 30 basis just since June 27th... and that draining the 15 Trillion in QE liquidity will be a really onerous mission. Credit and liquidity creation really only moves in 2 directions....* It's binary ---- It expands..... and if it's not expanding it contracts. It expands and all boats rise...... credit creation and liquidity creation... and when credit creation and liquidity contract all boats are floating in a lower sea of liquidity... He reiterated the risk parity hedging technique that is used in both fixed income and in stocks around the world and the "risk parity" method of forced hedged selling is not at all widely understood. the risk parity trade /hedge is a good topic for further exploration. John