Weekend May 1 2022
A small drop in NFLX subscribers tanked the stock, down 71% since November.
The stock and bond markets are collapsing much faster than anyone realizes, take a look.
The FANG Facebook, Apple, Netflix, Google et al tech stocks is already down 31% from its November high. These high flyers powered the NASD 100 and COMP to new highs last year. Now they are falling faster than they rose.
'Previous support once it falls becomes the new overhead resistance. NOte the 7,000 level
ARKK now trades for 30% of its February high. This is a sneak preview of what will eventually happen to the broader marekets.
small caps are leading the market down.
SML has dropped 17% since its November high
Bond prices continue to fall I was wrong about a possible bottom, not yet.
The FED will likely raise the 3 month T Bill 50 basis poiints to 1% Wednesday leaving it still behind the actual market, as I said in a recent column the FED is literally behind the curve.
Here is a cross currency chart of the Euro versus the Russian Ruble. Russia is asking for energy payments in rubles desperately trying to raise demand and therefore the price of the ruble, it is not working.
a 50% drd against the Euro in two months. Russia may be headed for financial ruin.
Bond Market
The rate on the ten year note is up from 1.2% to 2.9% just since last August. Firms that enjoyed near zero cost debt will no longer have that luxury.
Cost of borrowing is getting far more expensive in hurry
Here is an investment grade bond fund - a 16% drop since November, again is anyone noticing?>
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