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While stocks, bonds, crypto and commodities make the usual headlines, it was the Turkish Lira that should have dominated the business media today.

The currency collapse accelerated early on overnight following Erdogan’s insistence of following Islamic-based efforts to cut rates. BUT, during a speech later in the day he highlighted “other tools” and signaled efforts to force exporters to use a ‘sanctioned’ FX rate, which prompted an almost unprecedented squeeze (even though it will do nothing but bifurcate the currency and reinforce a black market FX rate)…

That 25% jump is the biggest daily rise since 1983.

Erdogan was Ari Gold to the shorts today (for now)…

Aside from that, the S&P suffered biggest 3-day drop since May as stocks suffered on the back of Manchin’s “no” and the Big ‘O’. Small Caps were the hardest hit on the day and Nasdaq the least worst horse in the glue factory. Stocks came back from their worst levels after Europe closed…

All the majors broke below key technical levels, and despite a late-afternoon ramp, could not recover it. S&P<50DMA, Small Caps<200DMA, Nasdaq<100DMA, Dow testing 200DMA…

Both defensive and cyclicals were hit hard today but the latter was ugliest…

Source: Bloomberg

“Most Shorted” Stocks erase Friday’s early squeeze-fest gains…

Source: Bloomberg

Treasuries were mixed on the day (although the trend was the same from Europe’s open) with the long-end notably underperforming (2Y -1bps, 30Y +4bps)…

Source: Bloomberg

Rate-hike odds were unchanged today…

Source: Bloomberg

The dollar ended lower on the day, unable to extend Friday’s gains…

Source: Bloomberg

Bitcoin chopped around but ended unchanged and remains glued around its 200DMA…

Source: Bloomberg

NatGas surged to the top of its recent range (on cold weather demand fears)…

… as Oil prices plunged (on Omicron lockdown impact on demand anxiety)! WTI tumbled to almost a $65 handle before bouncing back in the afternoon, still closing below $69…

Finally, remember, remember December 2018. If this market is ‘testing’ Powell’s limits, it has a long way to go…

Source: Bloomberg

That was a 20% intraday swing before Powell flip-flopped from hawk to ultra-dove. Is the strike higher or lower than that this time.

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