Midday Market 10/17: Following the macroeconomic events: bonds and the economy – Part 2

Midday Market:

Tech and consumer stocks pull the market in the first trading session of the week with a clear buy the dip sentiment across the entire market. VIX drops pulling a shorts-cover rally from the morning with sellers completely disappearing, allowing buy volume to lead sell 18 times across the entire NYSE. Most positions covered are at strikes around 350/3500 and 360/3600 of SPY/SPX at the end of this week, October Monthly Expiration.

In addition, investor focus shifts to the upcoming ER season with fairly optimistic sentiment in the direction: “Corporate profits and revenues are not, or have not yet been, significantly affected by macroeconomic conditions as the market is commenting” helping buyers dominate the market in the morning with internal pegged in the bullish zone throughout the first half of the trading session.

Following the macroeconomic events: how vulnerable are the bond market and the economy?

Part 2: high inflation, gilt crash, liquidity drain, energy crisis… how vulnerable are the bond market and the economy?

In part 1 of this week's Macroeconomics article, Viet Hustler has compiled for readers the recent economic and financial event flows. In part 2, Viet Hustler will delve into analyzing the trio inflation (accompanied by tight monetary policy) – sovereign debt crisis (sovereign debt crisis) – banking system crisis (banking crisis).

One thing is certain, compared to stock crash, bond crash has a much more profound impact on the economy. Among them, bond crash is linked to the possibility of a banking system crisis, which is beginning to emerge from Credit Suisse's liquidity issues.

Liquidity drain and instabilities in the bond market