Another Case Of The Mondays

“You get recession, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.” – Peter Lynch

It’s another case of the Mondays for US stocks this morning as all three major averages are firmly in negative territory with the Nasdaq leading the way lower. Along with equities, just about every other risk asset is trading lower, including bitcoin and crude oil. Bonds are down again as well, while yields continue to surge in what has been one of the most relentless moves higher in yields that the market has seen in years.

The economic and earnings calendars are pretty much empty today, but things will pick up greatly as the week goes on with a busy slate from Tuesday through Thursday before Friday’s equity market holiday.

Given the widening lockdowns in China and concerns of a broader economic slowdown, oil prices have been under pressure this morning continuing a trend of weakness from last week. While the week is just a few hours old at this point, WTI is trading below $94 per barrel and is in danger of breaking a relatively important support level. At current levels this morning, WTI is pretty much up 24% YTD but down 24% from its closing high in early March.