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April PPI?
First, here’s a very short survey I’d like you to fill out when you have a couple of minutes. It will directly impact the type of content we deliver here, so I’d love to see what you think! There are only four questions so it shouldn’t take more than a few minutes — thank you in advance!
Come join me as we dive in and see what’s moving!
Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day.
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Something Stinks: Why the Smart Money Is Nervous — and Why You Should Be Too
If you're feeling uneasy about the markets right now, you aren't alone. Smart money — the institutions, funds and professional traders who usually stay cool under pressure — are flashing warning signs left and right. And if they're nervous, you should be, too.
Something Doesn’t Add Up
The Fear and Greed Index might have ticked up from 3 to 16, but we’re still deep in Extreme Fear territory. What’s strange is the market’s reaction — or lack of reaction — to good news.
Inflation came in lighter thanks to falling oil prices, which should have sparked a rally. Instead, we saw selling pressure continue, and we had another miserable down day Thursday.
Treasury yields are climbing when they should be falling.
Normally, a fearful market would spark a flight to safety, with investors piling into U.S. Treasurys and pushing yields down. Not this time...
In fact, it looks like banks are dumping Treasurys altogether, signaling deeper problems under the surface of the U.S. financial system.
Today’s price action confirmed those fears. The Dow Jones Industrial Average (DJIA) closed down 1,014 points, the S&P 500 (SPY) dropped 3.5%, and the Nasdaq 100 (QQQ) cratered 4.3% lower. And the Russell 2000 (IWM) — often the canary in the coal mine for the broader economy — fell 4.20%.
A Dangerous Setup
Naked short selling is hitting levels bigger than during the COVID crash. It's one of the clearest signs that something bigger is going on. Add in some massive put orders on stocks and ETFs with almost no open interest, and the picture gets even murkier.
The big players are positioning for trouble, not recovery.
Right now, there’s no clear narrative to explain it all. That's what makes it so dangerous. Markets thrive on stories — whether it's interest rate cuts, tech innovation or a soft landing.
When there's no story, and the price action stops making sense, it’s usually because something is happening behind the scenes that hasn’t hit the headlines yet.
We may not have all the answers right now, but we can read the signs. Be cautious with new positions. Tighten your stops. Think about what you’re willing to hold through extreme volatility,
because we could be entering a period where market moves get even bigger, faster and scarier.
If the people who usually make money from the chaos are worried, it’s a good time to listen.
Now be sure to join me live at 9:15 a.m. ET for “Morning Monster,” my market-open livestream on YouTube!
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