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Bond massacre continues and the Fed dove rally fails already

Mike “Mish” Shedlock's Sitka Pacific Capital Management,Llc

The S&P 500, Nasdaq and Dow all gained nearly 3% yesterday. Guess what?

Indexes and Bonds courtesy of Investing.Com

Well, That Was Fast

Smack in the face of yesterday's rally attempt on very dovish Fed comments, both the stock and bond markets revolted today.

Yesterday's Action

Indexes and commodities courtesy of Investing.Com

Yesterday the Nasdaq rallied under 400 points. As I type, it is now down over 600 points.

Six Things Guaranteed to Be Transitory

Stocks, Gold, Oil, Rip Higher as Dovish Powell Wins Hoot of the Day Award

That was my observation after yesterday's action. In my post, Stocks, Gold, Oil, Rip Higher as Dovish Powell Wins Hoot of the Day Award I also made these comments.

The reaction today does not change in the least. We are now in a bear market. This is another Fed-induced bear market orgy that won't last.

All Powell can do is prolong the pain. How is the jump in crude today in the Fed's (or anyone's) best interest?

Powell would be better off getting it over with. But he won't. And he is clueless about what's coming.

The longer the Fed tries to stave off recession, the deeper it ultimately goes. We are headed for a waterfall event.

Hoot of the Day

Reporter to Powell: "Do you think the Fed has a credibility problem?"
Powell: "No, I don't .... And I want to keep it that way."

That was from the post FOMC Q&A video that I watched.

For his performance, and arrogance, Powell wins my Hoot of the Day award by a landslide.

Cathie Wood Bonus Hoot

Beautiful Observation by Suburban Drone

Stopped Already

Yesterday and Today

Yesterday: "This is another Fed-induced bear market orgy that won't last."

Today: "Well, that was fast"

Panic Buying Turns to Panic Selling

Tick counts are a measure of stocks bought on upticks (rising markets) or downticks (declining markets).

Sustained counts over +1000 is panic buying, under -1000 is panic selling.

My hoot of the day is this observation "Panic Buying Turns to Panic Selling".

Will add a tick chart as soon as I have one.

Repeating Comments Made Many Times

The S&P 500 could and probably will decline 50% from the top. And if it does stocks will not even be cheap.

I repeat my April 22, 2022 message Expect More Stock Market Pain Because It's Coming

By the way, If You Think I'm Bearish Please Read John Hussman.

Author

Mike “Mish” Shedlock's

Sitka Pacific Capital Management,Llc

EUR/USD remains depressed below mid-1.1800s; downside potential seems limited

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GBP/USD trades with negative bias, eyes 1.3600 ahead of UK jobs data

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Gold declines as trading volumes remain subdued due to holidays in China

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The week ahead: Key inflation readings and why the AI trade could be overdone

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XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.