People are catching on - Fed has no clue

Investors are nervous - lots of intraday volatility

Correction - could it be?

USA- Going DEEPER into debt

DOGE - already making excuses

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Warm-Up

- People are catching on - Fed has no clue

- Investors are nervous - lots of intraday volatility

- Correction - could it be?

- USA- Going DEEPER into debt

- DOGE - already making excuses

- Next Monday - Market Holiday and Inauguration day

Markets

- No happy - inflation and jobs (A 1-2 Punch for markets)

- CPI and PPI this week - make it or break it?

- Rates hitting key resistance

- Oil spikes - multi-month high

All of a sudden..

- Microsoft, Facebook and other companies are cutting staff again

- Talk of tough year ahead... What is up?

If they don't cooperate?

- Cut their pay!

- China is set to slash pay for staff at its top three financial regulators, including the central bank, by about half, as part of a regulatory revamp unveiled in 2023 to bring their salaries in line with other civil servants

- Starting from this month, staff at the People's Bank of China (PBOC), National Financial Regulatory Administration (NFRA) and China Securities Regulatory Commission (CSRC) will see total income slashed by about half.

More China - Pull Forward

- China’s trade data in December beat expectations by a large margin, with exporters continuing to frontload shipments as worries over additional tariffs mount, while the country’s stimulus measures appear to be supporting demand in the industrial sector.

- Can it last?

Let's Talk Turkey

- Fed has no idea what is going on

- They simply can move markets, (equity and fixed income) by liquefying markets

- HOPE that they have the general trend and can regulate the flow so not overheat or overcool

- In reality, their forecasting tools are crap

--- BUT, focus on what they do, not what they say or their outlook

Employment Numbers

- Summary: Nonfarm payrolls increased by a stronger-than-expected 256,000, the unemployment rate slipped to 4.1% from 4.2%, average hourly earnings growth year-over-year was a sturdy 3.9%, and more people were employed.

- Much better than anticipated !

- Unemployment rate drops

- So, we see higher prices and better employment - markets spooked that Fed out of touch

- One-Two punch for equities

Result

- Steepening yield curve

Market Sell-off

- NASDAQ 100 off 6% from the highs

- Big names down more (NVDA 13%, Tesla 18%, Apple 10%, NFLX 10%)

- SOOOO - Big Cap Tech is in a correction and dragging down markets

- Markets are in the RED for the year and unchanged/under the pre-election day move.

- More speculative (runners) stocks are down even more...

Quantum Stocks

- DUH!

- Sell-off deepened as Zuck cautioned that the potential is still years (and years) away (on Joe Rogan Show)

--- Zuck looking like he wants to follow in Elon's footsteps

Quantum Stocks

More Zuck

- Bashing Apple...

- No innovation, random rules

- "So how are they making more money as a company? Well, they do it by basically, like, squeezing people, and, like you're saying, having this 30% tax on developers by getting you to buy more peripherals and things that plug into it," Zuckerberg said. "You know, they build stuff like Air Pods, which are cool, but they've just thoroughly hamstrung the ability for anyone else to build something that can connect to the iPhone in the same way."

Oh - and this...

- Meta on Friday told employees that its plans to end a number of internal programs designed to increase the company's hiring of diverse candidates, the latest dramatic change ahead of President-elect Donald Trump's second Wh...