Chartpoint » May 8. Consumer credit deceleration

May 8. Consumer credit deceleration

–Late profit taking turns in both crude oil and stocks after Trump tweeted “I will be announcing my decision on the Iran Deal tomorrow [Tuesday] from the White House at 2:00 p.m.”  Oil slipped back below 70 and stocks ceded a few points as well.  The opening of the US Embassy in Jerusalem in one week, May 14, is another possible flashpoint.
–Light volume yesterday with no euro$ contract trading over 100k.  Yields were nearly unchanged, edging higher by 1 bp or less across the curve.  Treasury kicks off the auction cycle with threes today.

–Consumer Credit yesterday showed an increase of just $11.6b, below expectations of $15b.  Although this is likely just payback from storm induced buying last year, revolving credit has declined for the past 2 months, -0.6 in Feb and -3.0 in March.   Pretty ominous signal if it continues.  The total growth (including non-revolving autos and school loans) was 3.6% but that is showing deceleration as well.  In Q4 the rate was 6.9%, in January 4.7, Feb 4.3 and March 3.6.

–AAPL had a gap open to new highs yesterday as the public jumped on Buffet’s bandwagon.  However, I would note that Buffet said he would by more ‘at the right price’, which probably doesn’t mean new highs.  AAPL closed on its low on light volume, and left a gap from 184.25 to 184.75.  It appears likely that there will be a gap open lower today, leaving a potential island top. 

 

Posted on May 8, 2018 at 6:41 am by alexmanzara · Permalink
In: Eurodollar Options

Leave a Reply