Posted by on December 3, 2018 3:13 pm
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Categories: Economy

“we’re gonna need a bigger trade truce…”

The initial short-squeeze is over and there has been no follow-through…

As we warned this morning the “he said, Xi said” uncertainty (h/t Cameron Crise) of a potential pause in trade tensions is simply not enough to overcome a tightening Fed and fading economic hope. 

The S&P stalled around the 2800 support level we suggested…

 

And Small Caps and Dow Transports have given up their gains, leading the reversal…

 

And finally, the short-end of the yield curve has collapsed further with 2s5s back below 2bps…

And 10Y Yields have tumbled back to below 3.00%…

Crude is still higher but rolling over as gold extends its gains…

 

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