Game of Chicken: Colonel Sanders Versus General Tso

U.S. and China locked in cycle of mutual retaliation…

Highlights

• U.S. and China locked in cycle of mutual retaliation…

• … as equity markets endure wild swings

• Trump may be facing pressure from Congressional Republicans

• Treasury market confronts liquidity issues

Key Takeaways

• Intra-Day Volatility is Nearly Unprecedented: We had an absolutely wild -5.3% or -284 point negative reversal session in the S&P 500 yesterday (-4.5% for the Dow and -6.4% for the Nasdaq) — closing below 5,000 for the first time in just under a year (and nearing official bear market territory). The last time the stock market was up this much at the highs (+4.05%) to then close negative was October 14, 2008. The question now is — after what happened yesterday, is anyone going to be brave enough to be “buying the dips?”