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?


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