Stocks Slump On Kabul Blast, Kaplan Banter, & Crappy Data

Initial and continuing claims unexpectedly rose, GDP missed expectations with consumption weaker than expected, multiple f**king bombs went off in Kabul killing and injuring 100s, and Fed Speakers Bullard, George, & Kaplan all came out hawkishly pitching a taper earlier than the market wants…

• *BULLARD: FINANCIAL STABILITY CONCERNS A GOOD REASON TO TAPER

• *BULLARD SAYS FED SHOULD `GET GOING’ ON TAPER, FINISH IN 1Q 2022

• *KAPLAN: CONCERNED BY UNINTENDED IMPACT OF FED BOND BUYING

• *KAPLAN SAYS PREFERS TO CONDUCT TAPER IN PLUS OR MINUS 8 MONTHS

Kaplan is most notable (Bullard has been hawkish for a while) as just last Friday, Kaplan said may delay taper due to Delta, but now he appears to have reversed that more dovish lean.

But apart from that, dip-buyers still kept charging in during the day – terrible news is great news for markets right!? WTF is wrong with us.

Stocks did get real into the last hour as The Pentagon laid out the grisly details of what had occurred. Small Caps were hardest hit all the majors ended the day down hard…

It appears the short-squeeze is over as “Most Shorted” stocks – despite yet another attempt at the open, and at the European close to stage a ramp – ended lower on the day…

Source: Bloomberg

Short-term VIX spike dramatically relative to far-term VIX after a week of confident compression into tomorrow’s J-Hole speech…

Source: Bloomberg

Treasury yields roller-coastered on the day, but ended mixed with the long-end outperforming (30Y -1bps, 5Y +2bps) ahead of tomorrow’s likely vol-splosion from Powell…

Source: Bloomberg

The dollar rallied off support once again today…

Source: Bloomberg

Crypto was weaker today with Bitcoin sliding back to around $47,000…

Source: Bloomberg

Gold rallied up to $1800 intraday but faded back, but did end higher on the day…

Oil prices were very choppy today – war premium or no war premium? – with WTI testing down towards $67…

Finally, as the world and their pet rabbit contemplate Powell’s words tomorrow and whether ending The Fed’s balance sheet expansion should be done sooner than later, consider that maybe, just maybe QE ain’t f**king doing anything for the real economy…

Source: Bloomberg

But then again, what does that matter? All that appears to be on the minds of this new generation is stimmies in ma pocket and record highs for stonks…

Source: Bloomberg

This will not end well!