Talk of global equity market bounces is laughable. Here's a scorecard of global stock market performance in the past year highlighting the drawdown in major equity indexes from their respective 2015 highs.
MSCI World Index: -18.3%
China's Shanghai Comp: -45.1%
Spain's IBEX: -31.3%
Japan's Nikkei: -23.1%
Germany's DAX: -26.5%
France's CAC 40: -22.2%
U.S. Russell 2000: -24.4%
U.S. S&P 500: -11.9%
Last week's "bounce" in U.S. equities was far from a vote of confidence. It came on no-volume.
Below is a quick smattering of crashing global financial markets and their "bounces" for context...
"1-day bounce (yesterday) does not an arrest of the stock market crash make," Hedgeye CEO Keith McCullough wrote in a note to subscribers this morning. "Draghi’s Euro is actually up vs. USD this morning as Italian stocks continue to crash and the DAX falls back to -26% since the 2015 peak – should he jawbone daily?"
"Context is critical here – after another -4.7% week for WTI, they bounced it +3-4% on the OPEC headline this morning and have since lost most of that. The risk range remains intact at $26.02-31.39 (don’t chase bounces, sell them!)," McCullough wrote.