Market opens sharply lower, as Global Markets continue to bleed red. Stocks in Europe were down over 2% overnight. The German DAX is now down 17% on the year, and nearly 30% from the 2015 highs. It’s firmly in a Bear Market. For perspective, the DOW and S&P are down 10% on the year and 14% from the all-time highs last Spring. It’s been a tough start to 2016. Oil is back at the lows for the year, with WTI at $26. The 10-year Treasury yield fell to 1.5% this morning, a level not seen since 2012. High quality Corporates and Muni’s are doing well. The Dollar continues to slide as well. Gold however is hitting a 1-year high. The cross currents throughout Global Markets are stirring. The financial plumbing remains under great stress. Earnings continue to come with a mixed bag, and a bias towards the negative. Cisco reported a solid Qtr. Tesla and Twitter did not. Janet Yellen is back on Capitol Hill today. Her presence and comments did not help yesterday. Let’s see what day 2 brings. This is one of those setups that feels like we could end the day positive after a brutal start. We shall see.
Mike
