‘Short this Nasdaq and invite me to your funeral’ says Jim Cramer! | MarketTalk: What’s up today? | Swissquote

Show notes

The European Central Bank (ECB) announced a 50bp hike at yesterday’s policy decision pointing at inflation expected to remain ‘too high for too long’.
The ECB decision came as a hint that the Fed could also play down stress in banking sector, highlight that the liquidity issues could be addressed with available tools and keep focus on economic data.
At the wake of the ECB decision, activity on Fed funds futures gives more than 80% chance for a 25bp hike. This probability was around 65% before the ECB’s decision.
Here is a couple of lines about what the ECB decision means for the Fed expectations for next week’s FOMC meeting:
https://medium.com/swissquote-education/if-ecb-is-any-indication-the-fed-should-continue-hiking-next-week-abc4b75af6db
In the markets, the US bond markets are now licking the past week’s wounds. The US 2-year yield is up but remains well below the pre-SVB collapse levels. BoFA’s MOVE index, which is the implied treasury volatility, hasn’t been this high since the 2008 subprime crisis, which calls for caution.
Relief on bank front sent stocks higher, and Bitcoin is up by more than 30% since last week.
Will the joy last? We will see, but a 4, 5, 6, 8% jump in stock prices is a sign that volatility is threatening and calls for caution.
Listen to find out more!