Nothing weird or funky happened over the weekend. The VIX has returned to normal, almost violently, and the S&P pushed slightly higher. I’m still concerned overall, and as the first third of the month gets X’ed off the calendar, are we still setting up to meet the grim reaper in September? Or is that my fever dream paranoia kicking in? A shorter one today, because I am sick as a dog.
...July payrolls fell 23,000 and September hike pricing dropped sixteen points before lunch. The trouble is that the chairman has said the September call rests on inflation, not employment.
...July payrolls fell 23,000 and the S&P closed at a record. Sixteen points came off September hike pricing in a morning. We had spent a week arguing that could not happen.
...The markets go up and the markets go down. It is when they do it to extremes with nothing fundamentally changing that you get price extremes, and then a course correction post news. Buy the rumour, sell the news. So is this recent rally hot wind and thin air, a Fugazi? We find out in a few hours, and no doubt you already have.
...Wednesday’s jobs miss moved the two-year almost nothing. Thursday, a committee reading a document moved it seven basis points. We try to work out what the front end is actually listening to.
...A jobs miss moved the front end nothing. A draft nobody has voted on moved it seven basis points. Payrolls land at 08:30 into a curve that has just told you what it actually reads.
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