News

Futures Tumble As Market Increasingly Susceptible To Gamma “Sucker Punch”

Ahead of today’s very disappointing ADP print, which badly missed expectations of 200K by nearly half, coming at just 117K, the whisper number was far higher, somewhere in the 300-400K range (to be expected following JPM’s latest prediction that the US will add 675K jobs per month for the next year), which in turn pushed yields sharply higher ahead of the print.

Alas it was not meant to be, and yields quickly reversed on the far worse than expected ADP report.

But while as recently as last week such a poor economic print would have been sufficient to push risk assets higher, especially with yields lower, today that was not the case, and instead futures tumbled as soon as the flashing red ADP headline hit the tape.

Could it be that we have transitioned away from a “bad news is good news for markets” regime to a clear cut “bad news is bad news” and why?

MORE

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s