Tariff Tantrum: Chaos Reigns in the Markets

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None of my lean set up. The ES gapped higher and rallied up to 5305.25 and then tanked when this headline hit:  

It sold off down to 5071.25, and then this headline hit: Trump Administration considers changes to China port fee plan after business pushback, and the ES rallied back up to 5140.00 at 1:42 PM.

I have never seen so many headlines and directional changes in my 40 years of trading. The headline algos must be making billions.

Like clockwork after the rally, the ES sold back off down to the 5072 level, and while I was typing, it popped back up to 5130 in less than 1 minute and then back down to a new low at 4940.50 at 3:35. It then popped up to 5012 after the MIM came out showing like $700 million to sell and went out to $3 billion to sell. The ES rallied 60 points in 10 minutes up to 5025. This is totally off the hook, and like I said, it's not going to stop.

The yield on the 10-year note fell as low as 3.8% last week and traded below 3.9% before surging later in the day to hit 4.14%, its biggest one-day move in a year after a weak 3-year note auction.

I just told PitBull — who made $1.2 million the last two days — that we have NEVER seen the futures move like this, and his response: “NO SHIT.” Oil is trading 59.60, Bitcoin is down to 77,500, and the bonds are down almost 2 full points. Smells like a credit crisis to me.