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So Today was the First Suck Day in the Markets of 2022

But should anyone care?

Volume was much more impressive than the last several weeks but really nothing to go “wow” over other than to observe that the NASDAQ got beat up some, bonds were sold off some more, and the S&P 500 failed to have it’s big 5 rally it over the all time closing high.

In other words, a nothing burger.

The big news is not the Dow Jones Industrial Average hitting an all time high, the S&P 500, the NASDAQ or anything else in market activity. The big news is the sudden parabolic rise in short term interest rates indicating a lack of buyers for short term US Treasury debt.

For example, the 6 month US Treasury note yield is starting to look a lot like Tesla’s stock chart:

But the US 1 Year Treasury is safe, right?

Maybe not. Then again, Jay Powell will have to defend the ChiCom yields on the 2 year UST, right?

That’s going to leave a mark.

Watch not only the semi-conductors this week, but reactions to the “jobs” report on Friday. While it might be previewed as a “gangbuster” report to pump the markets up on Wednesday and Thursday, I would look for another flat report leading to a Friday afternoon sell-off into the weekend.

For the record, my U-3 projection for this report is a measly addition of only 301,000 “new” jobs in December, leading to a major disappointment and rally in US Treasuries heading into the weekend. Add in a mild, but high volume, stock sell-off into the close and President Senior Moment’s speeches in the following week will echo like Kamala’s poontang.

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